Contributors Technical Analysis USDCHF Moves Towards Upper Level Of Ascending Triangle

USDCHF Moves Towards Upper Level Of Ascending Triangle

USDCHF is edging higher after the rebound on the 0.9890 support and the 23.6% Fibonacci retracement level of the upleg from 0.9185 to 1.0130, around 0.9900 and is moving towards the strong resistance obstacle of the ascending triangle, which has been holding since September 2018. The 20- and 40-day simple moving averages (SMAs) are ready for a bullish crossover, confirming the recent upward movement.

Technically, the MACD oscillator is strengthening its momentum above the trigger and zero lines, however, the stochastic oscillator is holding in the overbought territory, signaling possible downside retracement.

Immediate resistance could be faced near the 20-month high of 1.0130, which is acting as a significant barrier and only a close above this level could endorse further bullish actions, taking the price to 1.0170. More gains could lead the pair until the 1.0340 barrier, identified by the peak on December 2016.

On the other hand, a downside reversal would likely retest the 40- and then the 20-SMA around 1.0000, while even lower the 23.6% Fibonacci region of 0.9900 and the 0.9890 support level would come into focus. A drop below this area could confirm a bearish rally until the 38.2% Fibonacci of 0.9770.

In the long-term outlook retains a bullish structure, while in the medium-term, USDCHF has been stuck in an ascending triangle formation, which is a continuation pattern of the upward movement.

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