- USDCHF remains in bullish bias
- RSI suggest overstretched market
USDCHF has added more than 7% since the end of September, sending the price to a new five-month high of 0.9020. However, the pair is currently losing some ground but remains above the 0.8955 key level.
From a technical standpoint, the MACD oscillator is still extending its positive momentum, but the RSI is flattening above the neutral threshold of 50, indicating a potential downside correction.
If the bulls remain under control, then the price may test the next resistance line of 0.9050, taken from the peak in July. Even higher, the 0.9160 barrier could endorse the bullish bias in the short-term view.
On the other hand, a dive below 0.8955 could send traders toward the 20-day simple moving average (SMA) at 0.8865, but more importantly, the flat 200-day SMA at 0.8820 may act as a turning point.
Summarizing, USDCHF is in a strong upside tendency, and only a tumble below the 0.8710-0.8735 support region may change this view.
