VOT Research Desk
Even though the 50-Hour Moving Average (HMA) tests the buyers during the early hours of Monday in Europe, USD/CHF manages to post modest gains around 0.9360.
In doing so, the Swiss Franc (CHF) pair maintains its position inside of a short-term falling wedge bullish chart pattern and justifies bullish MACD signals.
Nevertheless, the quote’s most recent decline becomes less concerning beyond the support line of the indicated wedge, or at the latest, around 0.9310.
By breaking the 0.9310 support, the quote may defy the bullish chart pattern, but the round number 0.9300 may serve as an additional filter to the south before appeasing the USD/CHF bears.
In that event, the pair sellers will pay close attention to the lows recorded in April and March, which were respectively noted at 0.9195 and 0.9150.
In the meanwhile, rehabilitation efforts require confirmation from the 50-HMA barrier of 0.9365, a breach of which might push the upper line of the specified wedge down to, at the latest, 0.9395.
To encourage buyers, it should be noted that the USD/CHF run-up beyond 0.9395 should result in a clear break of the 200-HMA, which is expected to be at or near 0.9405 by the time of publication.
After that, a rally towards the late November swing high near the 0.9600 level is not completely improbable.
|
Daily SMA20 |
0.945 |
|
Daily SMA50 |
0.9737 |
|
Daily SMA100 |
0.9692 |
|
Daily SMA200 |
0.9647 |
