USDCHF came back swinging after its October retreat, crossing above its 50- and 200-day simple moving average (SMA) in the past couple of sessions. However, this positive momentum might be short lived as the pair is currently trading above the upper bound of its Bollinger Bands, signalling an overbought market.
Despite the mixed signals, the short-term oscillators are transmitting a positive bias, reflecting the recent price appreciation of the pair. The RSI is increasing above its 50 neutral mark, while the MACD is found above zero and its red signal line.
Should the bulls remain in charge, initial resistance might be found at the 0.9329 level. Surpassing this barrier, could pave the way towards the 0.9369 obstacle before targeting the 0.9472 region. Breaching the latter could strengthen the pair’s positive momentum, sending the price to test its June 2020 high of 0.9532.
On the flip side, if the price breaks below the congested region, which encapsulates the 0.9235 support and the 50-day SMA currently at 0.9218, the bears might then target the 200-day SMA, currently found at 0.9163. Sinking below that crucial level, all eyes would turn into the 0.9084 barrier.
In brief, the technical picture is cautiously positive. For that to change, the sellers would need to breach the 200-day SMA.
