USD/CHF technical analysis: Faces rejection near 100-day SMA amid reviving safe-haven demand
|- Retreats back closer to 0.9900 handle to snap three consecutive days of winning streak.
- Set-up remains in favour of bullish traders and should attract some dip-buying interest.
Having climbed to over one-month tops earlier this Tuesday, the USD/CHF pair witnessed a modest intraday pullback from a resistance marked by 100-day SMA. The pair, for now, seems to have snapped three consecutive days of winning streak and has now drifted back closer to the 0.9900 handle, eroding a part of the overnight strong gains.
Looking at the technical picture, the pair has been trending higher over the past five weeks or so along a short-term ascending trend-channel formation, suggesting a well-established bullish trend. Moreover, technical indicators on the daily chart have just started gaining positive traction and add credence to the near-term constructive set-up.
Meanwhile, oscillators on the 1-hourly chart have drifted into the bearish territory and have been losing positive momentum on the 4-hourly chart, pointing to a further intraday pullback amid the prevalent cautious mood and reviving demand for perceived safe-haven currencies – including the Swiss Franc.
Hence, a sustained breakthrough the mentioned handle is likely to accelerate the slide further towards the 0.9870-65 horizontal support en-route 50-day SMA support near the 0.9840 region, below which the corrective slide could further get extended back towards the 0.9800 round figure mark – support marked by the lower end of the ascending trend channel.
On the upside, bulls are likely to wait for a sustained move beyond the 0.9930 region (100-day SMA) before positioning for any further near-term appreciating move towards challenging the very important 200-day SMA resistance near mid-0.9900s. The latter coincides with the trend-channel resistance and should act as a key pivotal point for bullish traders.
USD/CHF daily chart
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.