USD/CHF outlook: Rises to the highest in nearly five months

Slobodan Drvenica Windsor Brokers

USD/CHF

The USDCHF continues to trend higher within the broader bull-channel and hit new multi-week high (the highest since Nov 2) on Wednesday.

Larger bulls accelerated after surprise rate cut by SNB last week, which increased pressure on Swiss franc and continues to weigh, with sustained break above psychological 0.90 barrier, adding to pair’s bullish stance.

Recently formed double golden cross (10/200 and 20/200DMA) and very strong bullish momentum, underpin the action, though daily studies are overstretched and warn that bulls may pause for consolidation / shallow correction in coming sessions.

Broken Fibo resistance (0.9028) and psychological (0.9000) reverted to supports, guarding daily Tenkan-sen (0.8945) which should contain dips to keep bullish structure intact for attack at next target at 0.9112 (Nov 1 high).

Res: 0.9071; 0.9112; 0.9181; 0.9244.
Sup: 0.9028; 0.9000; 0.8945; 0.8895.

Author

Slobodan Drvenica

Windsor Brokers

Industry veteran with over 22 years’ experience, Slobodan Drvenica joined Windsor Brokers in 1995 when he was an active trader for more than 10 years, managing the trading desk and own account departments.

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