USD/CHF Price Analysis: Intraday positive move stalls near ascending trend-channel resistance
|- USD/CHF gained traction for the second consecutive session on Tuesday.
- The price action constituted towards the formation of a bearish flag pattern.
- A sustained break through the trend-channel needed to confirm near-term bias.
The USD/CHF pair built on the previous day's recovery from the key 0.9500 psychological mark and gained some follow-through traction for the second straight session on Tuesday.
The recovery from two-week lows has been along a short-term ascending trend-channel formation and was further supported by bullish technical indicators on the 1-hourly chart.
This coupled with the fact that oscillators on the daily chart have just started moving into the positive territory further support prospects for an extension of the positive move.
Meanwhile, bulls struggled to capitalize on the momentum back above 100-hour SMA and now seemed to have faced rejection near the top end of the mentioned trend-channel.
Against the backdrop of last week's decline from the 0.9900 mark, the trend-channel seemed to constitute towards the formation of a bearish continuation – flag chart pattern.
Hence, it will be prudent to wait for some strong follow-through buying beyond the trend-channel resistance, around the 0.9675 region before placing fresh bullish bets.
On the flip side, a sustained break below the trend-channel support, near the 0.9615-10 region, might be seen as a fresh trigger for bearish traders and pave the way for a further slide.
USD/CHF 1-hourly chart
Technical levels to watch
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