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USD/CHF technical analysis: Bulls await a sustained move beyond parity mark

  • Continued with its struggle to extend the momentum beyond the parity mark.
  • Despite the intraday pullback, the pair has managed to hold above 200-DMA.

The USD/CHF pair continued with its struggle to make it through the parity mark and witnessed a modest pullback on Wednesday, albeit held above the very important 200-day SMA.
Given the pair’s repeated bounce from a support marked by the lower end of a two-month-old ascending trend-channel, the near-term bias remains tilted in favour of bullish traders.
Moreover, oscillators maintained the bullish territory 4-hourly/daily charts and support prospects for some dip-buying interest near the trend-channel support – around the 0.9940 region.
However, traders are likely to wait for a sustained move beyond the 1.10 handle before positioning for any further appreciating move back towards the recent swing highs near the 1.0025-30 region.
The pair could then extend the momentum further, though is likely to confront stiff resistance near the top end of the mentioned trend-channel, currently near the 1.0100 round-figure mark.
Conversely, a decisive break below the trend-channel support might turn the pair vulnerable to break below the 0.9900 handle and aim towards testing the 0.9860-55 support area.

USD/CHF daily chart



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