USD/CHF Price Analysis: On the front foot around 0.9950, stays inside weekly bullish channel
|- USD/CHF picks up bids to direct bulls towards the weekly top, also the highest since mid-June.
- Bullish channel, sustained break of monthly horizontal resistance area keeps buyers hopeful.
- Convergence of 100-SMA, a two-week-old resistance line challenges sellers.
USD/CHF adds more than what’s lost the previous day as it rises towards the weekly top, the same as the 3.5-month high, heading into Wednesday’s European session. That said, the Swiss currency (CHF) pair gains 0.30% intraday around 0.9950 by the press time.
The pair’s latest upside moves could be linked to the sustained break of a horizontal area comprising multiple levels marked since early September, near 0.9860-70.
Also keeping the bulls hopeful is the one-week-long ascending trend channel, currently between 1.0035 and 0.9885.
It should be noted that the USD/CHF pair’s declines past 0.9860 won’t be a clear sign of the bear’s return as a confluence of the 100-SMA and ascending trend line from September 13, around 0.9710, appears a tough nut to crack for them.
Even if the quote breaks the 0.9710 support confluence, the 0.9700 threshold and an upward sloping trend line from early August, close to 0.9530, will act as the last defense of the bears.
Meanwhile, the USD/CHF pair’s latest upside eyes the recent tops surrounding 0.9965 before heading towards the stated channel’s upper line near 1.0035.
If at all the quote rises past 1.0035, the yearly high near 1.0065 will be in focus.
USD/CHF: Four-hour chart
Trend: Limited upside expected
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