- USD/CHF stays positive near a three-week high.
- The resistance line of an eight-day-old rising trend channel limits the immediate upside.
- 200-bar SMA offers immediate support, SNB in the spotlight.
USD/CHF pulls back from the resistance line of a short-term rising trend channel while taking rounds to 0.9695, up 0.16%, during the early Thursday.
In addition to the channel’s resistance, nearly overbought RSI conditions also challenge the pair’s further upside.
However, sellers will wait for the entry below 200-bar SMA level of 0.9650 while targeting 61.8% Fibonacci retracement level of February 20 to March 09 fall, at 0.9590.
During the pair’s additional weakness past-0.9590, the said channel’s support line near 0.9490 will be the key to watch.
On the upside, a sustained break of 0.9740 can propel the USD/CHF prices further towards late-February highs surrounding 0.9850.
It should also be noted that the Swiss National Bank (SNB) is up for a monetary policy meeting decision at 08:30 GMT. While the Swiss central bank isn’t expected to announce any rate changes, a surprise moves can’t be ruled out amid the present rush to combat the coronavirus (COVID-19) fears.
USD/CHF four-hour (H4) chart
Trend: Bullish
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