USDCHF’s attempts to continue its ascent – despite reaching a new one-month high of 0.9815 – breached but failed to close above the inside swing high of 0.9750 and the 0.9778 and 0.9815 obstacles. The enduring positive move which has nearly recouped all of the losses from the 0.9848 peak seems to be backed by the rising Ichimoku lines as well as the increasing bullish momentum reflected in the short-term oscillators.
The MACD, in the positive region, continues to increase above its red trigger line, while the RSI heads towards overbought territory. Moreover, the stochastic lines are hovering below the overbought section.
If buyers manage to sustain the climb and close above the 0.9815 high, the two-month peak from February 20 could be the next barrier to challenge the bulls. Conquering the top may push the price towards the 0.9875 and 0.9917 barriers from December 2019, cementing the returning of a medium-term neutral market.
Otherwise, if sellers manage to pull the price further below the 0.9750 support, the Tenkan-sen line could interrupt the drop towards the 200-period simple moving average (SMA) at 0.9649 and the 0.9638 low beneath. Diving underneath, the 0.9566 trough could prove to be a tough obstacle to push past ahead of the 0.9523 to 0.9500 area, which encompasses the 100-period SMA.
To sum up, the signals in the very short-term reflect a bullish bearing and a break above 0.9848 would reinforce this outlook, while only a shift below the 0.9566 low could put it under scrutiny.
