USD/CHF Price Analysis: Jumps to fresh two-month tops, beyond mid-0.9200s
|- USD/CHF continued scaling hither for the fifth consecutive session on Thursday.
- The overnight breakthrough the 0.9200 mark was seen as a key trigger for bulls.
- The set-up supports prospects for a move towards the 0.9300 confluence region.
The USD/CHF pair gained traction for the fifth consecutive session and shot to fresh two-month tops, around the 0.9270 region during the early North American session.
The momentum reaffirmed the overnight bullish break through the 50-day SMA – for the first time since late May. A subsequent strength beyond the 0.9200 strong barrier prompted some technical buying and remained supportive of follow-through positive move.
The latter coincided with the 23.6% Fibonacci level of the 0.9902-0.8999 downfall and should now act as a strong base and attract some dip-buying. This, in turn, should help limit the downside near the 50-day SMA resistance turned support, near mid-0.9100s.
Meanwhile, technical indicators on the daily charts have been gaining positive traction and are still far from being in the overbought territory. The set-up supports prospects for an extension of the recent recovery from the key 0.9000 psychological mark.
The pair seems all set to surpass the 0.9300 round-figure mark and aim towards testing the next major hurdle near the 0.9350 confluence region – comprising of 100-day SMA and 38.2% Fibo. level.
USD/CHF daily chart
Technical levels to watch
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