The USD/CHF currency pair is currently attempting to exceed the 14-day Exponential Moving Average (EMA), positioned at 0.8832. Observations from the daily chart analysis point to a persistent bullish trend as the pair ascends within an established ascending channel. Traders are closely monitoring the support level at the lower boundary of this channel, located at 0.8750.
In recent trading sessions, the USD/CHF pair has rebounded from earlier losses, fluctuating around the 0.8830 level during Thursday’s Asian trading hours. The ongoing bullish sentiment is further reinforced by the 14-day Relative Strength Index (RSI), which hovers slightly above the neutral level of 50. This indicates that the market is exhibiting bullish tendencies. Moreover, the nine-day EMA remains above the 14-day EMA, suggesting favorable short-term price movements for the pair.
If the USD/CHF pair successfully surpasses the immediate resistance at the 14-day EMA of 0.8832, the next target will be the nine-day EMA at 0.8847. A break above these crucial levels may bolster the bullish sentiment, potentially propelling the pair towards the psychological threshold of 0.8900, located at the upper boundary of the ascending channel.
On the downside, if the pair experiences a downturn, it is expected to find support near the lower boundary of the ascending channel at the 0.8750 level. Should the pair decisively break below this level, it may signal a shift in market sentiment towards bearishness, increasing the likelihood of a decline towards a six-week low of 0.8606. Market participants remain vigilant in observing these critical levels as they navigate the current trading landscape.
