- May 28, 2021
- Posted by: Analysis Team
- Category: Forex News
- USD/CHF reverses the previous day’s pullback from weekly top.
- Confluence of three-week-old horizontal line, falling trend line from May 06 will test buyers amid bullish MACD.
- Sellers should look for entries below three-day-long support line.
USD/CHF prints 0.10% intraday gains while picking up bids to 0.8977, intraday high 0.8979, ahead of Friday’s European session. In doing so, the quote regains upside momentum, lost the previous day, backed by the bullish MACD.
It should, however, be noted that a convergence of crucial trend lines around 0.8990 should be considered a tough nut to crack for the USD/CHF buyers.
In a case where the pair crosses the 0.8990, a sustained break of the 0.9000 threshold becomes necessary to validate the run-up towards the mid-0.9000s.
Alternatively, pullback moves may rebound from an immediate rising support line near 0.8960, failures to do so can once again highlight the 0.8930-25 area comprising multiple levels marked since December 2020.
Overall, USD/CHF is consolidating the latest losses but the medium-term bulls have a long way to go.
USD/CHF FOUR-HOUR CHART