USD/CHF technical analysis: Bulls await upside break of 61.8% Fibo.
- USD/CHF stays positive above 200-day SMA, 50% Fibonacci retracement.
- A sustained run-up beyond 61.8% Fibonacci retracement can aim for late-May highs.
Despite successfully trading above key support confluence, the USD/CHF pair fails to provide a daily closing above 61.8% Fibonacci retracement of April-August downpour. The quote takes the bids to 0.9975 while heading into the European open on Thursday.
Given the bullish signals from 12-bar moving average convergence and divergence (MACD) and 14-bar relative strength index (RSI), the pair is likely to extend north-run towards late-May highs surrounding 1.0100 if successfully closing above the key Fibonacci retracement level of 1.0016.
On the contrary, a 200-day simple moving average (SMA) and 50% Fibonacci retracement offer important support close to 0.9948/50, a break of which could quick drag prices to the six-week-old rising trend-line, at 0.9880.
If at all bears manage to dominate below 0.9880, 0.9845/40 and 0.9800 will appear on their watch-list.
USD/CHF daily chart
Trend: bullish
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.
