- USD/CHF rises inside the monthly triangle and is struggling to extend its two-day uptrend.
- Continued break of 10-DMA, bullish MACD signal keeps buyers hopeful.
- USD/CHF buyers are lurking near the falling support line from 6 weeks ago.
The USD/CHF bull market will take a breather near 0.9210 during Monday’s weak Asian session after two days of uptrend as traders await rich data/events this week. Also challenging the Swiss Franc (CHF) pair is the return of Chinese traders after a week of Lunar New Year (LNY) holidays.
It is worth noting that the quote marked the first daily close above the 10-DMA since the previous day, January 11th. That said, the topside break of the short-term major moving averages has added to the bullish MACD signal, suggesting further upside for the USD/CHF pair.
However, the formation of a symmetrical triangle connecting the levels marked after January 2006 limits USD/CHF movement between 0.9235 and 0.9170 in the short term.
Note that the downhill support line from Dec 14, 2022 approaches 0.9125 by press time and acts as an additional filter heading north.
If the USD/CHF bears dominate above 0.9125, the 0.9100 round number and 0.9085 monthly low could act as a last resort for buyers.
Conversely, a successful breakout of the 0.9235 hurdle could lead USD/CHF buyers to a monthly peak near 0.9410. It’s worth noting that his August 2022 low near 0.9370 acts as an additional filter heading north.
USD/CHF: Daily Chart
Trend: Further Up Expected