- USD/CHF confirmed a near-term bullish breakout through head and shoulders neckline resistance.
- The near-term technical set-up favours bullish traders and supports prospects for additional gains.
- The emergence of some dip-buying should help limit the downside near the 0.8900-0.8890 area.
The USD/CHF pair gained strong positive traction on the first day of a new week and jumped to two-month tops, around the 0.8965 region during the early European session.
A sustained move beyond a strong horizontal barrier, around the 0.8920 region, was seen as a key trigger for bullish traders. The mentioned barrier acted as a neckline resistance of an inverted head and shoulders chart pattern.
Technical indicators on the daily chart are holding comfortably in the bullish territory and are still far from being in the oversold zone. This, in turn, favours bullish traders and supports prospects for additional gains in the near-term.
Hence, a subsequent move beyond the key 0.9000 psychological mark, en-route the 0.9040-50 resistance, now looks a distinct possibility. Some follow-through buying has the potential to push the USD/CHF pair further towards the 0.9075 barrier.
On the flip side, the neckline resistance breakpoint, which coincides with 50-day SMA, now seems to protect the immediate downside. Any further decline might be seen as a buying opportunity and remain limited near the 0.8890 horizontal level.
This is followed by support near the 0.8830 region, which if broken decisively will negate any near-term positive outlook and prompt some aggressive technical selling. The USD/CHF pair might the turn vulnerable to slide back below the 0.8800 mark.
USD/CHF daily chart
Technical levels to watch
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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800, as traders lack directional impetus amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
US core PCE inflation set to ease in February on month as Federal Reserve rate cut bets for June mount
The core Personal Consumption Expenditures Price Index is set to rise 0.3% MoM and 2.8% YoY in February. The revised Summary of Projections showed that policymakers upwardly revised end-2024 core PCE forecast to 2.6% from 2.4%.