USDCHF looks to have bottomed the pullback off the 1.0022 high near the familiar 50% Fibonacci retracement of the 0.9658-1.0026 bullish wave as the RSI and the Stochastics are turning up after hitting oversold levels.
Additional gains could potentially retest the 40-period exponential moving average (EMA) that curbed upside movements last week. Breaking higher and above the 38.2% Fibonacci of 0.9886, recent peaks around 0.9908 could take control ahead of the 23.6% Fibonacci of 0.9940.
Closing decisively below the 50% Fibonacci of 0.9843, the bears would aim for the 61.8% Fibonacci support area of 0.9799, a break of which would likely shift attention towards the 0.9772 barrier. Another leg lower may also find some footing around the 78.6% Fibonacci of 0.9737.
Overall, USDCHF keeps trading in a range since early September and only a remarkable rally above 1.0026 or a decline below 0.9843 would alter that status.
In brief, USDCHF may face upside pressure in the short-term, while in the bigger picture the neutral outlook remains well intact as long as the price holds within the 0.9843-1.0026 area.
