USD/CHF Price Analysis: Looks to extend gains beyond 0.9025
- USD/CHF is consolidating gains in the Asian session.
- More upside likely on the cards above 0.9025.
- Oversold MACD throws caution on selling bids.
The USD/CHF pair treads water in the Asian session. The pair manages to rebound quickly from the opening lows to trade with mild gains on Monday.
At the time of writing, the USD/CHF pair trades at 0.9015, up 0.06% on the day.
USD/CHF four-hour chart
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On the four-hour chart, the pair seems to gather upward momentum, backed by the formation of the Doji candlesticks, which tells a confirmation is needed before preceding in either direction.
However, the oversold Moving Average Divergence Convergence (MACD) indicator foretells stretched selling opportunities, which means prices hold the potential to reverse the prevailing trend.
On moving higher, prices would meet the first hurdle at the 0.9040 horizontal resistance zone followed by the 0.9080 mark placed at the 20-hour Simple Moving Average (SMA). The next on the bull’s radar would be the 0.9120 support turned resistance area.
On the flip side, if prices fall back to the 0.9000 mark and sustain below the latter then it would be the continuation of the falling trend for the pair at weekly lows of February toward 0.8950 (February 26 weekly low).
The next downside target awaits at 0.8871 (February 19 weekly low).
USD/CHF Additional Levels
Author
Rekha Chauhan
Independent Analyst
Rekha Chauhan has been working as a content writer and research analyst in the forex and equity market domain for over two years.
