USD/CHF Price Analysis: Advances towards 1.0000 on perpendicular 20-EMA
- A time correction in the asset price will resume its upside rally after a potential trigger.
- The formation of Rising Wedge is advocating an upside break considering the broader context.
- The RSI (14) is oscillating in a bullish range of 60.00-80.00
The USD/CHF pair is hovering around Tuesday’s closing price at 0.9954 and is expected to continue its four-day winning streak led by a strong broader context. The asset has delivered a vertical upside move since the first trading session of April.
Despite the formation of a Rising Wedge chart pattern on a four-hour scale, the price action is not displaying any sign of exhaustion. Usually, a Rising Wedge depicts a bearish reversal on a downside break. However, the juggernaut move is betting over a resumption of the bullish momentum after a mild time correction.
The 20- and 50-period Exponential Moving Averages (EMAs) at 0.9906 and 0.9828 respectively are scaling sharply higher, which adds to the upside filters.
The Relative Strength Index (RSI) (14) is oscillating in a bullish range of 60.00-80.00, which signals more upside ahead.
Should the asset oversteps Tuesday’s high at 0.9975, the greenback bulls will send the asset towards the psychological resistance of 1.0000. A breach of the latter will drive the asset towards the 3 October 2019 at 1.0028.
On the flip side, a slippage below Monday’s low at 0.9890 will drag the asset towards the 4 May high at 0.9853, followed by the 50-EMA at 0.9828.
USD/CHF four-hour chart
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Author
Sagar Dua
FXStreet
Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.
