USD/CHF Price Analysis: Steadies within weekly bullish channel around mid-0.8700s
- USD/CHF pauses four-day winning streak amid market’s indecision amid dicey US Dollar.
- Fitch downgrades US credit rating but market players rule out fears.
- Rising trend channel from Friday, sustained trading beyond key moving averages keep Swiss Franc pair buyers hopeful.
- Sellers need validation from 0.8700 support confluence to retake control.
USD/CHF stabilizes near 0.8750 as bulls run out of steam after ruling for four consecutive days ahead of Wednesday’s European session. The Swiss Franc (CHF) pair’s latest inaction could be linked to the market’s struggle to justify the US credit rating downgrade as bankers and White House officials turn down the fears of witnessing any major negatives from the Fitch Ratings’ move.
Also read: US Dollar Index: DXY ignores softer yields to reclaim 102.00 as sentiment sours on US credit rating cut
Apart from the sluggish US Dollar, the steady RSI (14) also prods the USD/CHF bulls. However, an upward-sloping trend channel formation established since Friday, currently between 0.8790 and 0.8700, keeps the pair buyers hopeful.
Even so, the impending bull cross on the MACD and the quote’s successful trading beyond the key moving averages, as well as the aforementioned bullish channel, underpins upside bias for the USD/CHF pair.
That said, a convergence of an ascending trend line from Monday and the 50-Hour Moving Average (HMA), around 0.8730 at the latest, restricts the Swiss Franc pair’s immediate downside.
Following that, the 100-HMA and the stated channel’s bottom line, close to the 0.8700 round figure by the press time, could act as the final defense of the USD/CHF buyers.
In a case where the USD/CHF bears dominate past 0.6700, the odds of witnessing a slump toward the yearly low marked the last week around 0.8550 can’t be ruled out.
On the contrary, an upside break of the channel’s top line, close to 0.8790, needs validation from the 0.8800 round figure to help the USD/CHF bulls in challenging May’s bottom of around 0.8820 and dominate afterward.
USD/CHF: Hourly chart
Trend: Further upside expected