USD/CHF technical analysis: Bulls might continue to show some resilience at lower levels

• Resurgent USD demand helped reverse an early dip to sub-0.9900 levels.
• Bulls might aim back towards testing a confluence hurdle near mid-0.9900s.
• Sustained break through an ascending channel will negate the bullish outlook.

The USD/CHF pair, for the second straight session on Monday, showed some resilience below the 0.9900 handle and has now climbed to the top end of its daily trading range. Resurgent USD demand, to a larger extent, helped offset reviving safe-haven demand and turned out to be one of the key factors behind the pair’s intraday bounce of around 25-30 pips.
 
Looking at the technical picture, the pair’s recent recovery move from multi-month lows set on August 13 has been along a short-term ascending trend-channel, pointing to a well-established near-term bullish trend. Hence, any subsequent slide might continue to attract some dip-buying near the trend-channel support – currently around the 0.9870-65 region.
 
Meanwhile, technical indicators on hourly/daily charts have been losing positive momentum but are still not flashing bearish signals, reinforcing prospects for the resumption of the recent bullish trajectory back towards challenging an important confluence resistance near mid-0.9900s – comprising of the very important 200-day SMA and 50% Fibo. level of the 1.0238-0.9659 slide.
 
A follow-through buying has the potential to lift the pair further beyond the recent swing highs – around the 0.9985 region – towards another confluence barrier near the parity mark, comprising of the top end of the mentioned ascending channel and 61.8% Fibo. level of, above which bulls are likely to aim for a subsequent move up towards the 1.0100 handle.
 
On the flip side, a sustained break below the trend-channel support – also coinciding with 38.2% Fibo. level – might negate any near-term bullish bias and set the stage for a sharp downfall further towards testing 23.6% Fibo. level support near the 0.9800 round-figure mark with some intermediate support near the 0.9840 region.

USD/CHF daily chart