Morning Market News – USD/CHF

At this point, the USD/CHF pair is still staying above 0.9733 with minor support intact. A further rise is expected in the pair even though upside momentum is unconvincing. We’re favoring the whole down trend form the 0.9733 level has completed after defending key support again. A further rise would be seen to a retracement of 0.9799. However, break of 0.9733 will mix up this bullish outlook and turn bias back to the downside for the 0.971 level support instead.

Considering the bigger picture, current development suggests that USD/CHF has defended the 0.9733 key support level again. A rise from the 0.9733 level could develop into a medium-term move and target a test on 0.9799 high. This represents the upper end of a long-term range. On the downside, break of the 0.9733 support level is now needed to indicate completion of the rise from 0.97115. Otherwise, a further rally will remain in favor in the medium term.

A rising start to the week with a very tight consolidation candle. A bullish candle when the average true range is currently on high volume reflects certainty now. However, the bulls will point to the consolidation above the previous high which suggests they are confirming the breakout. The pair’s momentum on the daily chart remains strong with the oscillator lines crossing back higher and the rising in the mid-60s. The pair with the support of Friday’s low at 0.9733 there is a thick band of support which the bulls will look to use as a buy zone in order to maintain the recent momentum of the breakout. Ultimately though, with strong technical, corrections still remain a chance to buy for further gains. Friday’s all-time high at the 0.9772 level is the resistance now.

The USD/CHF pair leaned on the key support 0.9733 level and rebounds bullishly from there, as the EMA50 formed good support base that protects suggested a positive scenario, while rebound from the EMA provides clear positive signals on the four hours’ time frame.

Therefore, these factors encourage us to continue suggesting the bullish trend in the upcoming sessions, reminding you that breaching 0.9772 will confirm completing the decline and that its positive target extends to reach 0.9799 followed by 0.9805 while holding above the 0.9733 level represents the key condition to continue the expected rise.

The expected trading range for today is between the 0.9733 support and the 0.9799 resistance.

Expected trend for today: Bullish
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