Bulls Push Confluence of 0.9980 Resistance

  • USD/CHF advances in a three-day uptrend, eyes third consecutive monthly gain.
  • Convergence of 50-SMA, 100-SMA bulls has been challenging lately.
  • MACD and RSI conditions suggest gradual advances towards the yearly low.

USD/CHF buyers are scrambling with the 0.9975-80 hurdle during the first hour of Monday morning in Europe. In doing so, the Swiss currency pair (CHF) is preparing for the third monthly gain as it pushes a joint from the 100-SMA and the 50-SMA.

Given the firmer RSI (14) and bullish MACD signals, not to mention the pair’s sustained trading beyond a three-day-old ascending trendline, USD/CHF prices should remain firmer.

However, a sharp upside break of the 0.9980 hurdle seems necessary for the bulls to encounter the psychological magnet at 1.0000.

Thereafter, multiple hurdles around 1.0080 could test USD/CHF’s upside before challenging the yearly high at 1.0148. In case the quote remains firmer above 1.0150, the April 2019 high around 1.0240 will attract market attention.

Meanwhile, the pullback move remains elusive unless the quote stays above the aforementioned support line from Wednesday near 0.9920 at the latest.

If the USD/CHF bears manage to conquer the 0.9920 support, the 0.9900 threshold and the monthly low near 0.9840 will be on their radar.

Overall, USD/CHF should remain firmer, but room for upside appears limited.

USD/CHF: four-hour chart

Trend: continuation of the expected increase

Eleanor C. William