- USD/CHF extends its rally to four straight days, refreshed seven-week highs.
- Solid resistance lies around the confluence of a top-trendline of an ascending channel and a psychological price level of around 0.9800.
The USD/CHF advances sharply after hitting a daily low at 0.9726. in the North American session, the USD/CHF is trading at 0.9758 after hitting a seven-week high at 0.9807.
USD/CHF Price Analysis: Technical outlook
During the day, the USD/CHF printed a seven-week high, above the 0.9800 figure, though it was short-lived. The major retreated toward current exchange rates. Nevertheless, oscillators, particularly the Relative Strength Index (RSI), signal buyers still have some fuel left in the tank to re-test the abovementioned level, which, once cleared, could pave the way towards July’s 14 swings high at 0.9886.
Otherwise, the USD/CHF might consolidate around the 0.9700-0.9800 range ahead of the release of Swiss CPI figures on Thursday, alongside Friday’s US Nonfarm Payrolls.
Short term, the USD/CHF 4-hour chart depicts the pair trending up in an ascending channel. The high of the day was the second test of the top-trendline of the channel, with sellers stepping in. dragging the major 50 pips lower. USD/CHF traders should note that the high of the day, was reached when the Relative Strength Index (RSI) peaked at overbought conditions. Therefore, once the RSI dipped, then a re-test of the 0.9800 figure is on the cards.
The USD/CHF first resistance would be the R1 pivot at 0.9777. Once cleared, the next supply zone would be the figure and top-trendline of the channel around 0.9800. On the flip side, the USD/CHF First support would be the daily pivot at 0.9722. A breach of the latter will send the major tumbling towards the 20-EMA at 0.9709, followed by the 0.9700 mark.
