USD/CHF technical analysis: 6-week-old resistance-line questions rise towards 1.0040 confluence

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  • Nearby resistances-line holds the upside capped ahead of 100-day SMA, 38.2% FIbo. confluence.
  • 200-day SMA seems strong downside support.

USD/CHF’s run up to a fortnight high still needs to cross near-term upside resistances to aim for the key confluence as it trades close to 0.9993 ahead of the Europe markets open on Monday.

A downward sloping trend-line since early-May at 1.0012 holds the gate for the pair’s rally to 1.0040 confluence comprising 100-day simple moving average (SMA) and 38.2% Fibonacci retracement of January to April month upside.

Should prices rally past-1.0040, 50-day SMA level of 1.0073 and the 1.0100 round-figure could lure buyers.

Alternatively, 200-day SMA level of 0.9970 acts as immediate support, a break of which can recall 61.8% Fibonacci retracement, at 0.9915, on the sellers’ radar.

Pair’s further downside below 0.9915 might not refrain from dragging the quote towards 0.9850 support level.

USD/CHF daily chart

Trend: Pullback expected

 

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