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USD/CHF Looks Set for Further Gains

May 12, 2022

  • USD/CHF gained momentum after testing support near 0.9700.
  • Bullish trend line has formed support near 0.9880.

The US Dollar, Swiss Franc pair started a fresh rally from near the 0.9700 level. USD/CHF tested resistance near 0.9980 before consolidating lower.

USD/CHF 4-Hour Chart (Trend: BULLISH)

On the 4-hour chart, the USD/CHF pair tested resistance near 0.9980 before correcting lower. Support was then tested at 0.9872, which is also close to the 38.2% Fibonacci retracement level of the upward move from the swing low of 0.9708 to the swing high of 0.9975. The quote is now consolidating near 0.9950, and continues to trade well above both the 100-MA (red) and 200-MA (blue). 

For the pair to continue bullish, the quote will first need to retest resistance near the recent high of 0.9975. Above this there is further resistance near the 1.0000 level. Further gains could see the quote climb up towards 1.0050, a level last seen in 2019.

In contrast, if the pair turns bearish, the quote will first need to test support near 0.9900. This is also close to the 23.6% Fibonacci retracement level (of the 0.9708 low to the 0.9975 high). Below this there is further support from the key bullish trend line near 0.9880. Further losses could see the quote drop down towards the 0.9700 support level and the 100-MA (red). 

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