USD/CHF technical analysis: Rallies to 2-1/2 month tops, further beyond parity mark
|- The overnight sustained move beyond 200-DMA was seen as a key trigger for bullish traders.
- Slightly overbought conditions on hourly charts warrant cautions before placing fresh bets.
The USD/CHF pair added to the overnight strong gains and continued gaining positive traction through the early European session on Tuesday. The pair climbed to its highest level since mid-August, with bulls now looking to extend the momentum further beyond the parity mark.
Given the recent bounce from a support marked by the lower end of a multi-week-old ascending trend-channel, the previous session's sustained move beyond the very important 200-day SMA was seen as a key trigger for bullish traders and fueling the ongoing upward trajectory.
Meanwhile, technical indicators on the daily chart have been gaining positive traction and support prospects for a further near-term appreciating move. However, oscillators on hourly charts are already flashing overbought conditions and warrant some caution before placing aggressive bullish bets.
Hence, any subsequent move up seems more likely to confront stiff resistance, rather take a brief pause near the top end of the mentioned trend-channel, currently near the 1.0040 region. On the flip side, any meaningful pullback might attract some dip-buying interest near the 0.9975 horizontal zone.
Failure to defend the said support, leading a slide back below mid-0.9900s (200-DMA), might negate the near-term bullish outlook and prompt some aggressive technical selling. The pair then could slide back towards challenging the trend-channel support with some intermediate support near the 0.9900 handle.
USD/CHF daily chart
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