USD/CHF Price Analysis: Seesaws around 0.9700 inside weekly bullish channel
- USD/CHF struggles to extend four-day uptrend inside a short-term bullish chart pattern.
- Successful break of 200-SMA keeps buyers hopeful but RSI conditions hint at a pullback.
- Recovery remains elusive unless crossing 0.9780 hurdle, sellers could wait for 0.9630 break.
USD/CHF buyers flirt with the 0.9700 threshold inside a one-week-old bullish channel during Thursday’s Asian session.
In doing so, the Swiss currency (CHF) pair takes rounds to the three-week high, also snapping a four-day uptrend inside, amid overbought RSI conditions.
Given the quote’s latest pullback from the stated channel’s resistance, backed by the oversold RSI, the USD/CHF prices may decline further. However, the 200-SMA support near 0.9670 could offer a strong challenge to the sellers.
Even if the pair drops below 0.9670, it needs to defy the bullish channel by breaking the 0.9630 support to convince the bears.
Following that, a south-run towards the monthly low of 0.9495 can’t be ruled out.
Alternatively, the upper line of the aforementioned channel, near 0.9740, could challenge the immediate USD/CHF advances ahead of the 50% Fibonacci retracement of its downturn from mid-May, around 0.9780.
In a case where the pair rises past 0.9780, the 0.9820 level may act as a buffer during the run-up targeting the 61.8% Fibonacci retracement level of 0.9846 and mid-June swing low around 0.9875.
USD/CHF: Four-hour chart
Trend: Pullback expected