USDCHF found support near the 0.8700 round level on Monday with the scope to regain its positive momentum after a short correction last week.
Overall, the pair has been on an upward trend since mid-July and the positive trajectory in the RSI and the MACD is still feeding hopes that the pair could reach higher levels. However, some confirmation will be needed as the RSI has yet to climb above its 50 neutral mark and the MACD is still some distance below zero.
A close above the nearby resistance of 0.8770 could lift the price towards its 50-day simple moving average (SMA) at 0.8865. Then, if the bulls claim the 0.8900 zone too, the next target will be the crucial 0.8980 resistance area. A decisive rally above that wall and, more importantly out of the bearish channel at 0.9045, could stabilize somewhere between the 200-day SMA and the 0.9100 round number.
Should the pair slip below the 20-day SMA at 0.8675, the bears may aggressively press the price back to 0.8555. The lower band of the long-term bearish channel is within a breathing distance at 0.8520. If that base cracks too, the sell-off may worsen to 0.8360, where the Q1 2015 uptrend started.
In brief, USDCHF could stay supported in the short-term as long as it trades above its 20-day SMA at 0.8665. A successful move above 0.8770 could confirm another extension higher.
USDCHF found support near the 0.8700 round level on Monday with the scope to regain its positive momentum after a short correction last week.
Overall, the pair has been on an upward trend since mid-July and the positive trajectory in the RSI and the MACD is still feeding hopes that the pair could reach higher levels. However, some confirmation will be needed as the RSI has yet to climb above its 50 neutral mark and the MACD is still some distance below zero.
A close above the nearby resistance of 0.8770 could lift the price towards its 50-day simple moving average (SMA) at 0.8865. Then, if the bulls claim the 0.8900 zone too, the next target will be the crucial 0.8980 resistance area. A decisive rally above that wall and, more importantly out of the bearish channel at 0.9045, could stabilize somewhere between the 200-day SMA and the 0.9100 round number.
Should the pair slip below the 20-day SMA at 0.8675, the bears may aggressively press the price back to 0.8555. The lower band of the long-term bearish channel is within a breathing distance at 0.8520. If that base cracks too, the sell-off may worsen to 0.8360, where the Q1 2015 uptrend started.
In brief, USDCHF could stay supported in the short-term as long as it trades above its 20-day SMA at 0.8665. A successful move above 0.8770 could confirm another extension higher.
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