USD/CHF Price Analysis: Remains capped near 100-DMA, symmetrical triangle confluence resistance

• USD/CHF continued with its struggle to move back above 0.9700 mark.
• The set-up warrants some caution before placing fresh directional bets.

The USD/CHF pair seesawed between tepid gains/minor losses and remained confined in a narrow trading band, below the 0.9700 mark through the early European session.

Looking at the broader picture, the pair has been oscillating between two converging trend-lines over the past one month or so, forming a symmetrical triangle on the daily chart.

Meanwhile, the triangle resistance now coincides with 100-day SMA, which if cleared decisively might be seen as a key trigger for bulls and pave the way for additional gains.

However, neutral oscillators haven’t been supportive of any firm near-term direction and thus, warrant some caution before placing any aggressive directional bets.

Hence, it will be prudent to wait for a valid breakout in either direction before confirming the pair’s near-term trajectory amid persistent uncertainty over the coronavirus pandemic.

That said a convincing break through the mentioned confluence resistance should assist the pair to aim towards challenging the very important 200-day SMA, around the 0.9800 mark.

On the flip side, the triangle support, around the 0.9620 region might continue to protect the immediate downside and is closely followed by the 0.9600 round-figure mark.

Failure to defend the mentioned handle might prompt some fresh technical selling and turn the pair vulnerable to accelerate the slide towards the key 0.9500 psychological mark.

USD/CHF daily chart

Technical levels to watch