Technical analysis of USD/CHF

Intraday bias in USD/CHF remains neutral as range trading continues. In the bigger picture, medium-term outlook also remains neutral as USD/CHF is staying in the range between 0.9660/1.0237.

Until the 0.9841 support (50% Fibo retracement and the lows from Sept. and Oct.) stay intact, the rise from 0.9660 is expected to resume sooner or later. On the upside, the first resistance is 0.9926 (December 03 high). If the bulls manage to cross that level, this can act as a validation point to escalate the run-up towards 0.9980 and 1.0000 round-figure, which break will bring retest of 1.0027 area.

However, sustained break of 0.9841 will indicate near-term reversal and pave the way back to 0.9660 support. Right now the pair is testing the lower boundary, near 0.9870, of the bearish flag formation on H4 chart. Also the 50 SMA just crossed bellow 200 SMA on the same time frame, which is a death cross and indicating the potential sell-off extend. But Sellers should wait for a confirmation of the downside break of flag support to aim for the theoretical target of 0.9700.