USD/CHF Price Prediction: More upside dependent on break above 100-day SMA

USD/CHF is charting a sideways course just beneath its September high and the 100-day SMA.
The pair is in a short-term uptrend, favoring a extension higher subject to a clear break above the SMA.

Joaquin Monfort FXStreet

USD/CHF flatlines in the 0.8660s after pausing in its run up from the late September lows. The pair is close to the (blue) 100-day Simple Moving Average (SMA), currently situated at 0.8691.

USD/CHF Daily Chart

The short and medium-term trends are bullish and given the principle that “the trend is your friend” the odds favor an extension higher.

That said, USD/CHF has now reached the target generated by the breakout from the late August and September range at 0.8680. This suggests bullish pressure might wane.

A break above the 100-day SMA and the 0.8700 level would confirm a further extension to the 0.8750 resistance level (August 15 high).

The Relative Strength Index (RSI) momentum indicator is still not in overbought suggesting the pair has room for more upside.

Author

Joaquin Monfort

FXStreet

Joaquin Monfort is a financial writer and analyst with over 10 years experience writing about financial markets and alt data. He holds a degree in Anthropology from London University and a Diploma in Technical analysis.

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