USD/CHF Technical Analysis: Stage seems set for a move towards 1.0025-30 supply zone
|- The USD/CHF pair moves closer to the parity mark on upbeat US macro data.
- The set-up favours bullish traders and support prospects for additional gains.
The USD/CHF pair climbed to fresh six-week tops in reaction to mostly upbeat US macro releases, with bulls now looking to reclaim and extend the momentum further beyond the parity mark.
The pair last week broke through a descending trend-line resistance, which along with another ascending trend-line constituted towards the formation of a symmetrical triangle on the daily chart.
This coupled with the fact that the pair has finally managed to find acceptance above the very important 200-day SMA might have already shifted the near-term bias in favour of bullish traders.
Meanwhile, technical indicators on the daily chart have been gaining positive traction and are still far from being in the oversold conditions, further reinforcing the near-term constructive outlook.
Hence, a sustained strength above the 1.00 handle might prompt some technical buying and accelerate the positive move further towards October monthly swing highs resistance near the 1.0025-30 region.
On the flip side, any meaningful pullback now seems to find some support near the triangle resistance breakpoint, around the 0.9960-50 region, also nearing a technically significant moving average (200-DMA).
USD/CHF daily chart
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