USD/CHF has been on a bullish run for quite some time now. The weekly chart reveals that since the currency pair hit its three-year lows at .8696 last May, it has been crawling its way up the charts. Will the dollar extend its win against the Swiss franc to a fourth week in a row?
Given the market’s current risk averse environment, it just may!
However, keep an eye out for the area around.9170 as the pair may just encounter resistance around it.
For one, it is the level where the 100 SMA and 200 SMA look to converge.
If you’re a fan of Fibonacci retracements, it may also tickle your fancy that .9170 is where the 38.2% Fibonacci level is of the high at .9838 (hit on May 19) to the swing low at .8696. The area also used to be a support level where USD/CHF bounced off from in February 2012 and January 2013.
Stochastic also indicates that the dollar rally may soon run out of steam as it already indicates overbought conditions.
We will have to wait and see the candlesticks that would materialize around the .9200 handle before jumping to that conclusion though. Who knows, bullish close above the moving averages could hint at more upside and that the currency pair may soon make its way back above .9400.
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