USD/CHF technical analysis: Bulls in control near multi-week tops, now eyeing a move beyond 200-DMA
|- Continues scaling higher and moves closer to ascending trend-channel resistance.
- Sustained move beyond 0.9960 region will set the stage for further near-term gains.
The USD/CHF pair regained positive traction on Wednesday - marking the fourth day of up-move in the previous five - and climbed fresh six-week tops, around the 0.9945 region post-US PPI.
The pair inched closer to the very importance 200-day SMA, which coincides with the top end of a one-month-old ascending trend-channel and should act as a key pivotal point for bullish traders.
Meanwhile, technical indicators on hourly charts maintained their bullish bias and have just started gaining positive traction on the daily chart, supporting prospects for an eventual bullish breakout.
Hence, a sustained strength above the mentioned confluence barrier – around the 0.9950-65 region - will set the stage for a strong follow-through move towards reclaiming the parity mark.
On the flip side, the 0.9920 horizontal zone now seems to protect the immediate downside, which if broken might trigger some long-unwinding trade and drag the pair back below the 0.9900 handle.
The pullback could then get extended further towards testing the lower end of the ascending trend-channel – around the 0.9815-10 region – with some intermediate support near the 0.9845-40 area.
USD/CHF daily chart
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