USD/CHF Price Analysis: Rising wedge probes 200-HMA breakout below 0.9700
- USD/CHF picks up bids inside short-term bearish chart formation.
- 200-HMA breakout favor buyers but RSI conditions, rising wedge’s upper line challenge further upside.
- Weekly horizontal support could test bears before giving them control.
USD/CHF rises to a one-week high of around 0.9660 heading into Monday’s European session. In doing so, the Swiss currency (CHF) pair picks up bids inside a one-week-old rising wedge bearish formation.
That said, the 200-HMA breakout keeps the buyers hopeful unless the quote stays beyond 0.9645. However, the stated wedge’s upper line of 0.9665 could challenge the pair’s further upside.
Should USD/CHF bulls keep reins past 0.9665, the 0.9700 threshold and the 61.8% Fibonacci retracement of September 07-13 downside, near 0.9720, could lure the buyers.
It’s worth noting that the buyer’s dominance beyond 0.9720 will enable them to challenge the monthly top surrounding 0.9870.
On the flip side, the 200-HMA level near 0.9645 restricts immediate downside ahead of the stated wedge’s support line, close to 0.9620.
Also acting as a downside filter is the one-week-old horizontal support zone near 0.9560-45.
If at all the USD/CHF bears keep reins past 0.9545, the odds of retesting the 200-DMA level on the daily chart, around 0.9485 by the press time, will be a crucial support to watch.
USD/CHF: Hourly chart
Trend: Limited upside 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.
