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USD/CHF Bulls Still Have Control of the Market Around 0.8990 USD

June 3, 2021

Talking Points: 

  • USD/CHF holds its gains in the early trading session in Europe.
  • The pair eye up additional gains as it sits comfortably above 50-hour SMA.
  • The momentum oscillator indicates a potential upward momentum.

USD/CHF moves higher in the early part of European trading. The pair is moving in a tight trading zone while it awaits some confirmation before moving confidently in either direction.

At the time of publishing, the pair trades at 0.8985 USD, up 0.08% for the day.

 

USD/CHF 4-Hour Chart:

On the 4-hour chart, the pair has seen strong support above the 5-hour Simple Moving Average (SMA) at 0.8977 USD. USD/CHF has created higher lows with the formation starting from the 0.8930 USD level and the highs are consolidating around the 0.9000 USD level.

If the pair can continue to trade above the session’s high at 0.8986 USD, then it has a strong chance to move back towards 0.9000 USD a key psychological level.

The Relative Strength Index (RSI) is currently sitting around the 50% zone. This would suggest that there is still room for additional upward movement towards the horizontal resistance level at 0.9020 USD and then by the previous day’s high at 9024 USD.

On the flip side, if the price rebounds, then the first goal for the pairs bears might be the previous day’s low at 0.8967 USD and then the low of around 0.8945 USD as seen on the 1st of June.

In this scenario, the pair would test the rising trendline and with that, the selling pressure would increase and push the pair towards the low of 0.8930 USD as seen on the 25th of May. This could then lead to further decline if the price decisively breaks through the trendline.

 

 

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