- Having managed to defend the very important 200-day SMA, the USD/CHF pair regained positive traction and is now looking to break through a one-month-old descending trend-line resistance.
- The mentioned barrier coincides with 38.2% Fibonacci retracement level of the 1.0238-0.9854 recent downfall and should now act as a key pivotal point for the pair’s next leg of a directional move.
Meanwhile, technical indicators on hourly charts have been gaining bullish momentum and also recovered from the negative territory on the daily chart, supporting prospects for an eventual breakout and an extension of the ongoing recovery from multi-month lows.
Sustained move beyond the said confluence resistance now seems to set the stage for a possible move towards reclaiming the 1.0100 round figure mark with some intermediate resistance near mid-1.0000s (50% Fibo. level) and the 1.0075-80 horizontal zone.
Alternatively, failure near the current resistance area, leading to a subsequent slide below 200-DMA support near the 0.9970-65 region might negate the constructive set-up and turn the pair vulnerable to break below the 0.9900 handle and retest multi-month lows.
USD/CHF daily chart
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