USD/CHF Price Analysis: Rallies to fresh session tops, fast approaching 0.9700 level
|- USD/CHF gains strong follow-through traction and recovers further from multi-month lows.
- The set-up warrants some caution before positioning for an extension of the recovery move.
The USD/CHF pair built on its positive intraday move and picked up some pace during the early North-American session. The pair refreshed daily tops, with bulls now aiming to test the 200-hour SMA around the 0.9700 round-figure mark.
This is closely followed by over one-week-old descending trend-line resistance near the 0.9730 region, which if cleared should set the stage for an extension of the pair's ongoing recovery move from multi-month lows set in the previous session.
Meanwhile, technical indicators on the 4-hourly chart have been gaining positive traction but are yet to recover from the negative territory on the daily chart. This, coupled with slightly overbought conditions on the 1-hourly chart, warrant some caution.
Hence, it will be prudent to wait for some intraday consolidation or a modest pullback before placing any fresh bullish bets and positioning for a further near-term appreciating move towards the mentioned descending trend-line resistance.
On the flip side, any meaningful pullback now seems to find decent support near the recent daily closing lows, around the 0.9640 region, which if broken might negate any bullish bias and pave the way for a further near-term depreciating move.
USD/CHF 1-hourly chart
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