- Bulls are on the backside of teh prior bearish trend.
- USD/CHF offers the prospects of a final push that could see a test of the 0.8970s.
USD/CHF is holding in and around the 0.8900 area following a series of tests of the trendline dynamic resistance that has been forming on the 4-hour chart in a series of lower highs.
There is, however, a bullish bias while the price accumulates on the backside of the prior bearish trendline as the following will illustrate.
USD/CHF weekly charts
Zooming in on the weekly chart,m we can see that the bulls are moving in. A weekly break of the bearish trendline will be encouraging for a move toward a 50% mean reversion of the bear trend near 0.91000.
USD/CHF H4 chart
The 4-hour chart shows the bulls rejected each time they try to take control but we have prospects of a final push that could see a test of the 0.8970s as follows:
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Today, we analyze the performance of the USD/CHF currency pair, as we examine whether bulls are trying to take over for the medium-term.
The USD/CHF is currently trading around 0.9360, after a huge rally over the past few weeks. The pair has moved higher as the backing of the US Federal Reserve and the popular greenback’s strength have pushed the pair up.
On the technical chart, the pair is forming an ascending triangle pattern, which suggests a bullish trend in the near future. The pair must continue to break above the key 0.9390 resistance level, if it is to remain bullish in the medium term. On the downside, the 0.9330 support level is an important line of defense for the pair.
The pair data shows that the RSI (relative strength index) indicator has crossed the overbought level and is now converging to the mean. This is a positive sign for bulls, as it confirms that the pair is entering a new consolidation phase.
Fundamentals also support the USD/CHF pair’s bullish outlook. The US economy has grown at a faster rate than that of Switzerland during the pandemic, which has also created a bullish bias for the pair. The US Federal Reserve has vowed to maintain a large balance sheet, which has been a major factor in the pair’s strength.
Overall, the USD/CHF pair is experiencing strong bullish momentum, and there are no signs of a reversal in the near future. As the RSI indicator is still converging towards the mean, we expect the pair to remain buoyant in the medium term. We believe that the bulls are trying to take over in the medium term and the pair will continue to move higher in the coming weeks.