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  • USD/CHF takes the bids near intraday high, extends recovery moves from Friday.
  • A clear break above 100-bar, 200-bar SMAs favors the bulls amid upbeat RSI, MACD.
  • Two-week-old support line adds to the downside filters.

USD/CHF rises to 0.8890 in the latest upswing ahead of Tuesday’s European session. While risk-off mood favors the US dollar strength and the quote’s upside, a downward sloping trend line from January 17 probes the bulls.

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Should the quote rallies past-0.8895 immediate hurdle, which is also backed by bullish MACD signals and strong RSI, the monthly top near 0.8930 should be the spotlight.

It should, however, be noted that multiple peaks marked since late December can probe the USD/CHF buyers around 0.8930, a break of which will escalate the run-up towards early November low near 0.8980.

On the flip side, a confluence of 100-bar and 200-bar SMA near 0.8860 restricts the pair’s short-term downside ahead of a descending trend line from January 13, at 0.8835.

January 08 low close to 0.8820 and the monthly bottom surrounding 0.8755 is extra supports that USD/CHF sellers may target during further weakness past-0.8835.

Overall, the quote is likely to escalate the consolidation of losses marked in December amid the worsening market sentiment.

USD/CHF four-hour chart

Trend: Further upside expected