USD/CHF Price Analysis: Move beyond 0.9200 mark to pave the way for further gains
|- USD/CHF gained traction for the third consecutive session on Tuesday.
- The set-up favours bulls and supports prospects for additional gains.
- Dip-buying should help limit the downside near the 0.9080 support.
The USD/CHF pair edged higher for the third consecutive session on Tuesday and climbed to two-week tops, around the 0.9175 region during the early European session.
Given that the pair has now moved back above 50-day SMA, for the first time since late May, the near-term bias might have already shifted in favour of bullish traders. The constructive outlook is further reinforced by the fact that oscillators on the daily chart have just started moving into the positive territory.
That said, bulls might still need to wait for a sustained strength beyond the 0.7200 mark before positioning for any further appreciating move. The pair might then aim to surpass August monthly swing highs resistance near the 0.9140 region and accelerate the momentum further towards reclaiming the 0.7300 mark.
On the flip side, the 0.9140-30 region now seems to protect the immediate downside and is closely followed by support near the 0.9100 mark. Any subsequent fall would still be seen as an opportunity for bullish traders. This, in turn, should help limit the downside near the 0.9080-75 strong horizontal support.
Only a convincing breakthrough the mentioned support levels will negate the positive bias and turn the pair vulnerable to slide back towards challenging the key 0.9000 psychological mark, or multi-year lows touched earlier this September.
USD/CHF daily chart
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.