USD/CHF Price Analysis: Immediate resistance line prods bulls around 0.8930 amid overbought RSI
- USD/CHF bulls struggle to keep the reins at two-month high.
- Overbought RSI (14) line joins three-week-old ascending trend line to challenge buyers.
- Swiss Franc pair sellers need validation from 0.8780 support confluence, previous resistance line to retake control.
USD/CHF clings to mild gains around the highest levels in two months, lacks momentum near 0.8920 heading into Thursday’s European session during a three-day winning streak.
In doing so, the Swiss Franc (CHF) pair portrays the pair buyer’s struggle with a three-week-old rising resistance line amid the overbought RSI (14). However, a successful trading beyond the previous resistance line stretched from late May, as well as the 200-SMA keeps the bulls hopeful.
With this, the pair’s pullback towards the 0.8900 and then to the 50% Fibonacci retracement of May-July downside, near 0.8850 appears imminent.
A convergence of the 200-SMA and 38.2% Fibonacci ratio surrounding 0.8780 appears a tough nut to crack for the USD/CHF bears past 0.8850, a break of which will highlight the multi-day-old resistance-turned-support line of around 0.8720 as the last defense of the buyers.
On the flip side, a clear break of the aforementioned resistance line, close to 0.8930 needs validation from the recent peak surrounding 0.8945, as well as the Swiss Unemployment Rate for August, to convince the USD/CHF buyers.
Following that, a run-up towards the 0.9000 psychological magnet can’t be ruled out. Even so, the late June swing high of around 0.9020 may act as an extra filter toward the north.
USD/CHF: Four-hour chart
Trend: Pullback expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
