- USD/CHF is struggling with an eight-day-old horizontal hurdle, holding a three-day uptrend.
- The nearly overbought RSI and holidays in key markets challenge the bullish momentum.
- The weekly support line and 200 SMA add to the downside barrier.
- Buyers can target the monthly ascending trendline on a successful break of 0.9950.
USD/CHF is struggling to continue its 3-day uptrend around 0.9950 in Monday’s slow Asian session. Nevertheless, the recent slowness of the Swiss currency pair (CHF) could be attributed to the inability to clear the significant upside hurdle during the holidays in the US, Japan and Canada.
However, further trading of the pair is beyond the 200 SMA, as well as a strong MACD signal bullishmaking USD/CHF bulls bullish on breaking the 0.9950-55 horizontal hurdle.
Even so, the RSI condition which is almost overbought and swing high recently near 0.9965 may challenge bulls before leading them to the line resistance which climbs from early September, approaching 1.0035 at the time of writing.
Note that the peaks recorded during the months of June and May, around 1.0050 and 1.0065 respectively, could also slow down the upward momentum of the USD/CHF pair.
On the other hand, the movement retreat can lead to the line Support week old, close to the 0.9800 reference level, but the 200 SMA level around 0.9750 may further limit the downside.
If USD/CHF sellers conquer Support 0.9750 SMA, the possibility of further decline towards the September low near 0.9480 cannot be ruled out.
USD/CHF: four-hour chart
Tendencies: Bullish
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