- USD/CHF picks up bids to refresh intraday high, extends bounce off three-week low.
- Looming bull cross on MACD, clear recovery from 200-SMA suggest further advances.
- Previous support line, one-week-old falling trend line prod Swiss Franc pair buyers.
USD/CHF remains on the front foot for the second consecutive day after bouncing off the key moving average in the last week, mildly bid near 0.9045 while refreshing the daily top on early Monday.
In doing so, the Swiss Franc (CHF) pair extends the previous rebound from the 200-SMA amid an impending bull cross on the MACD indicator.
Given the quote’s sustained bounce off the key moving average and upbeat MACD signals, the USD/CHF is likely to extend the latest rebound towards the previous support line stretched from early May, around 0.9080 by the press time.
However, a one-week-old ascending resistance line, near the 0.9100 round figure, challenges the pair buyers before giving them control.
In a case where the quote remains firmer past 0.9100, the odds of witnessing a rally toward the previous monthly high of around 0.9150 can’t be ruled out.
On the contrary, the 38.2% Fibonacci retracement level of the pair’s May-June upside, near 0.9020 at the latest, precedes the 0.9000 psychological magnet to restrict the short-term downside of the USD/CHF pair.
Following that, the 200-SMA and 50% Fibonacci retracement, respectively near 0.8990 and 0.8980, will be in the spotlight.
Should the USD/CHF bears dominate past 0.8980, their further ruling won’t hesitate to challenge the yearly low marked in May around 0.8820.
USD/CHF: Four-hour chart
Trend: Limited upside expected
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