Range Markets

  • USD/CHF stays well bid after breaking the monthly resistance line on Wednesday.
  • Bullish MACD increases the odds of the pair’s run-up to 50-day EMA.
  • A daily close below 0.9000 will recall the sellers.

USD/CHF rises to 0.9127, up 0.23% on a day, during the pre-European session on Thursday. In doing so, the Swiss major prints three-day winning streak while also keeping its upside break of a month-old falling trend line.

Even if the bullish MACD signals joining the trend line breakout, buyers are still less convinced until the quote clears the 21-day EMA level of 0.9115 on a daily closing. The same will help the pair challenge August 12 top near 0.9200.

Though, 50-day EMA level of 0.9220 can question the pair optimists after 0.9200, if not then the monthly top of 0.9242 will be on the bull’s radars.

Alternatively, the pair’s declines below the immediate support line, previous resistance, around 0.9097, will trigger fresh selling with a target near 0.9000.

It should, however, be noted that the pair’s weakness past-0.9000, will make it vulnerable to revisit the late-January 2015 top surrounding 0.8840.


Trend: Bullish

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