- Bulls managed to defend ascending trend-channel support on Thursday.
- Acceptance above 200-day SMA support prospects for additional gains.
The USD/CHF pair on Thursday staged a goodish bounce from a support marked by the lower end of a two-month-old ascending trend-channel on the back of positive trade-related headlines.
The pair posted modest gains for the second consecutive session and held steady near weekly tops, around the 0.9965-70 region through the Asian session on the last trading day of the week.
The fact that the pair has now found acceptance above the very important 200-day SMA support prospects for a further near-term appreciating move amid fading safe-haven demand.
This coupled with bullish technical indicators on hourly/daily charts further reinforce the constructive outlook and sets the stage for a move back towards reclaiming the parity mark.
The momentum could further get extended towards the recent swing highs, around the 1.0025-30 supply zone, en-route the trend-channel resistance, near the 1.0095-1.0100 region.
On the flip side, the trend-channel support, currently near the 0.9930-25 region, might continue to protect the immediate downside, which if broken might negate the near-term bullish bias.
Below the mentioned support, the pair is likely to accelerate the slide further below the 0.9900 round-figure mark towards testing its next major support near the 0.9855-50 horizontal zone.
USD/CHF daily chart