USDCHF has been in an upward path after reaching a 26-month low of 0.9419 on September 8. The pair has reached and has been trading around the parity level (1.00) in recent days.
The Tenkan-sen line being above the Kijun-sen line is a positive alignment pointing to bullish momentum in the short-term. The RSI adds to the view for positive momentum as it has been rising over the last number of days. Notice though that the indicator is currently at 69, close to the 70-overbought level.
If USDCHF continues rising, the area around 1.0037 – the six-month high from October 27 – could act as resistance. Notice that the price is at the moment not far below the aforementioned high. Further above, the range around the seven-month high of 1.0107 from April 10 could act as an additional barrier to the upside. The area around this potential key level encapsulates another peak from the recent past, namely the May 11 six-and-a-half-month high of 1.0099.
Should the pair decline, support could come around the current level of the Tenkan-sen at 0.9956 and further below (and given a sharper move down) from the range around the Kijun-sen at 0.9871.
The medium-term picture based on movement over the last five months is looking bullish. The overall trend throughout this period is a positive one. Additionally, both the 50- and 100-day moving averages (MAs) maintain a positive slope while there was a bullish (golden) cross recorded in early October when the 50-day MA moved above the 100-day one.
Overall, the pair is looking bullish in both the short- and medium-term.
