USD/CHF Price Analysis: Stretches post-SNB advances toward 0.8980 resistance confluence
- USD/CHF picks up bids to refresh intraday high, extends post-SNB run-up amid downbeat market sentiment.
- Convergence of 50-SMA, fortnight-old descending trend line challenges Swiss Franc (CHF) sellers.
- 200-SMA acts as an extra filter towards the north; pair sellers need validation from seven-week-old rising support line.
USD/CHF holds onto the previous day’s bullish bias while refreshing the intraday top near 0.8970 amid early Friday morning. In doing so, the Swiss Franc (CHF) pair portrays the failure to cheer the Swiss National Bank’s (SNB) rate hike as sour sentiment underpins the US Dollar.
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As a result, the major currency pair jostles with the key upside hurdle surrounding 0.8980, comprising the 50-SMA and a downward-sloping resistance line from June 12.
It’s worth noting that the USD/CHF pair’s successful rebound from a seven-week-long rising support line joins the bullish MACD signals and upbeat RSI (14) line, not overbought, to depict the buyer’s ability to cross the immediate resistance near 0.8980.
Following that, the 0.9000 psychological magnet and the 200-SMA hurdle of 0.9010 will act as extra checks for the USD/CHF bulls before directing them toward the monthly high of near 0.9120.
On the flip side, the intraday bottom of around 0.8945 acts as immediate support for the USD/CHF pair to watch during the quote’s pullback.
However, the sellers remain off the table unless the pair trades above the previously mentioned support line, close to 0.8910 at the latest.
In a case where the USD/CHF breaks the 0.8910 support, the 0.8900 round figure may act as a validation point for the pair’s downside towards the previous monthly low of around 0.8820.
USD/CHF: Four-hour chart
Trend: Further upside expected
Author
Anil Panchal
FXStreet
Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.
