The USD/CHF extends its gains for four days in a row, advancing firmly towards the 0.9400 figure, up 0.26%, trading at 0.9356 during the New York session at the time of writing. A risk-off market mood maintains safe-haven currencies firmly bid, except for the Swiss franc and the Japanese yen, posting losses against the buck.

In the meantime, the US Dollar Index (DXY), which tracks the greenback’s performance against a basket of its peers, advances 0.43%, sitting at 96.90. The USD/CHF has an upward bias in the daily chart, as shown by the daily moving averages (DMA’s) with an upslope, residing well beneath the spot price. Also, Wednesday’s break of an eight-month-old downslope resistance trendline indicates that the USD/CHF is firmly heading towards the 2021 year-to-date high at 0.9473.

BULLISH AND BEARISH CONDITIONS/ POSSIBILITIES :

Shifting attention to our short-term oscillators, we see that the RSI, already near its 70 line, has turned up again. It could emerge above 70 soon. The MACD lies well above its zero line, slightly above its trigger. Both indicators detect strong upside speed and support the notion for further advances in this exchange rate.

On the downside, we would like to see a dip below yesterday’s low of 0.9300 before we start examining a short-term reversal. The rate would already be below the upside line taken from the low of November 9th, and the bears may get encouraged to dive towards the low of November 19th, at around 0.9250, or the low of November 16th, at 0.9237. If neither zone is able to stop the slide, then we may experience extensions towards the low of November 15th, at 0.9187.

USDCHF Likely to Extend Consolidation

Nov 25 2021