Search ForexCrunch
  • USD/CHF gains some traction for the second straight session, albeit lacks follow-through.
  • Traders await a sustained break through the intraday trading range before placing fresh directional bets.

The USD/CHF pair traded with a mild positive bias for the second day, albeit lacked any strong follow-through and remained below the 0.9700 mark, or one-week tops set in the previous session.

The pair has been oscillating between important intraday moving averages (100 & 200-hour SMAs), which warrants some caution before positioning aggressively for any firm near-term direction.

Moreover, neutral technical indicators on 1-hourly/daily charts also point to indecision among trades, making it prudent to wait for a sustained break through the mentioned trading range.

A convincing break below 100-hour SMA support, currently near the 0.9645 region, might prompt some technical selling and accelerate the fall back towards testing sub-0.9600 levels.

Conversely, a decisive break through 200-hour SMA, around the 0.9680 region, leading to a subsequent move beyond the 0.9700 mark might be seen as a fresh trigger for bullish traders.

Above the mentioned handle, the pair is likely to extend its recovery from two-week lows and aim back towards the very important 200-day SMA, currently near the 0.9800 level.

USD/CHF 1-hourly chart

fxsoriginal

Technical levels to watch