The US Dollar has been driven by strong downside movement against the Swiss Franc since early May and thus fell by 2.70%. This bearish sentiment began after the exchange rate hit the upper boundary of a dominant ascending channel.
This downside risk has resulted in the currency pair to reached April 25 low level. However, during the past few days, the USD/CHF exchange rate has bounced off the lower boundary of the dominant ascending channel and gradually moving north.
Given that the currency exchange rate has breached a resistance cluster formed by the 55– hour simple moving average and the weekly pivot point near the 0.98 mark, the pair is likely to target the 200– hour SMA at 0.99 during the following trading sessions.
