- USD/CHF regains some positive traction on the first day of a new trading week.
- The set-up still supports prospects for a further near-term appreciating move.
The USD/CHF pair attracted some dip-buying ahead of the 0.9700 mark, or 100-day SMA and has now managed to reverse Friday’s modest pullback from one-month tops.
The emergence of some fresh buying on Monday reinforced last week’s bullish break through a symmetrical triangle and shifts the near-term bias back in favour of bulls.
Bullish RSI and MACD indicators on the daily chart further add credence to the constructive outlook and support prospects for an extension of the recent positive move.
Hence, a move back towards challenging the very important 200-day SMA barrier, around the 0.9800 mark, looks a distinct possibility amid the prevailing risk-on mood.
Some follow-through buying might be seen as a fresh trigger for bullish traders and set the stage for a move towards the next major hurdle near the 0.9855-60 supply zone.
On the flip side, any meaningful pullback might still be seen as a buying opportunity and help limit the downside near the trend-line resistance breakpoint, around the 0.9670 region.
USD/CHF daily chart
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Technical levels to watch
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