USDCHF is trading close to Tuesday’s high of 1.0128, the pair’s firmest since March 2017.
The short-term bias is clearly bullish, with the pair having recorded a remarkable rally from late September when it touched a multi-month low of 0.9541. Also attesting to the bullish momentum are the positively aligned Tenkan- and Kijun-sen lines. The Chikou Span though may be suggesting an overextended rally; a pullback in the near-term is not to be ruled out.
Further advances could meet resistance around yesterday’s high of 1.0128, with an upside violation bringing March 2017’s peak of 1.0170 within scope. Higher still, the 1.02 handle would be eyed.
On the downside, support could come around the current level of the Tenkan-sen at 1.0040; a couple of tops from previous months at 1.0056 and 1.0067 lie not far above this point. The zone around the parity level (1.00) and the Kijun-sen at 0.9987 would come into focus in case of steeper losses. Further below, the attention would turn to the region around 0.9925 which was congested between mid-April to late August.
The medium-term outlook is positive, with trading activity taking place above both the 50- and 100-day moving average lines, as well as above the Ichimoku cloud. Notice as well that the two MAs look highly likely to post a bullish cross in the coming sessions.
Overall, both the short- and medium-term pictures look positive at the moment.
