USDCHF rebounded on the 1.0007 support level in the preceding week, remaining above the ascending trend line, which has been holding since September 2018. The stochastic oscillator has come off from the negative level indicating positive movements despite the bearish cross within the 20- and 40-day moving averages near the current market action.
The pair entered the Ichimoku cloud but is moving lower today, edging towards the rising trend line and the 1.0007 barrier. Falling below the diagonal line, the risk would shift from the current bullish outlook in the medium-term to a neutral one, challenging the 38.2% Fibonacci of 0.9970.
If the pair gains some more positive momentum and surpasses the SMAs, immediate resistance is coming from the 1.0125 barrier. The next target for the bulls would be the 27-month high of 1.0235
In brief, USDCHF has been developing in an upside tendency over the last year and traders should continue positive orders until a significant violation of the ascending trend line.
