- USD/CHF failed to capitalize on its early uptick to one-month tops.
- The set-up supports prospects for the emergence of some dip-buying.
The USD/CHF pair stalled its recent positive move to one-month tops and faced rejection near the very important 200-day SMA, around the 0.9800 round-figure mark.
The intraday pullback extended through the early North-American session and dragged the pair to fresh daily lows, around the 0.9740-35 region amid a mildly weaker USD.
On the daily chart, the pair this week has confirmed a bullish breakthrough an important confluence hurdle, comprising of 100-day SMA and the top end of a symmetrical triangle.
Moreover, bullish technical indicators on 4-hourly/daily charts add credence to the constructive outlook and support prospects for the emergence of some dip-buying.
The set-up remains in favour of bulls and a slide back towards the mentioned resistance breakpoint, around the 0.9700 mark, might still be seen as a buying opportunity.
That said, some follow-through selling might negate any near-term bullish bias and prompt some technical selling and drag the pair further towards the 0.9600 mark.
On the flip side, bulls might wait for a sustained move beyond the 0.9800 mark (200-DMA), above which the pair might aim towards testing the 0.9855-60 supply zone.
USD/CHF daily chart
Techical levels to watch
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