- The USD/CHF pair traded with a mild negative bias through the early European session on Monday, albeit showed some resilience below the 0.9900 handle.
- Given Friday’s breakthrough a three-day-old trading range, the set-up remains in favour of bullish traders and support prospects for a further appreciating move.
The fact that the pair has managed to hold comfortably above important intraday moving averages – 100 & 200-hour SMA, add credence to the near-term constructive outlook amid tempered expectations for aggressive Fed rate cuts.
Meanwhile, technical indicators on hourly charts maintained their bullish bias and have just started gaining traction on the daily chart, albeit deteriorating risk sentiment might turn out to be the only factor capping any strong gains.
Immediate resistance is now pegged near the 0.9950-55 horizontal zone, above which the pair is likely to accelerate the up-move further towards the very important 200-day SMA – currently near the 0.9980 region, en-route the parity mark.
On the flip side, any meaningful pullback below the 0.9900 handle might still be seen as a buying opportunity and hence, limit any further downside near the trading range resistance breakpoint, now turned support near the 0.9875-70 region.
USD/CHF 1-hourly chart
-636981737915381263.png)
Share
