USD/CHF Price Analysis: Seesaws around 0.9950 key hurdle
- USD/CHF jostles with an eight-day-old horizontal hurdle, probes three-day uptrend.
- Nearly overbought RSI, holidays in the key markets challenge upside momentum.
- Weekly support line, 200-SMA add to the downside filters.
- Bulls can aim for monthly ascending trend line on successful break of 0.9950.
USD/CHF struggles to extend the three-day uptrend around 0.9950 during Monday’s sluggish Asian session. That said, the Swiss currency (CHF) pair’s latest inaction could be linked to the inability to cross an important upside hurdle amid holidays in the US, Japan and Canada.
However, the pair’s sustained trading beyond the 200-SMA, as well as the bullish MACD signals, keep the USD/CHF pair buyers hopeful of overcoming the 0.9950-55 horizontal hurdle.
Even so, the nearly overbought RSI conditions and the recent swing high near 0.9965 could challenge the bulls before directing them to an upward-sloping resistance line from early September, close to 1.0035 by the press time.
It’s worth noting that the tops marked during June and May, close to 1.0050 and 1.0065 in that order, could also probe the USD/CHF pair’s upside momentum.
Alternatively, pullback moves may aim for the one-week-old support line, near the 0.9800 threshold, but the 200-SMA level surrounding 0.9750 could restrict the quote’s further downside.
If the USD/CHF bears conquer the 0.9750 SMA support, the odds of witnessing an extended fall toward September’s low near 0.9480 can’t be ruled out.
USD/CHF: Four-hour chart
Trend: Bullish