The US dollar is appreciating for the third consecutive day against the Swiss franc. The pair has extended its rebound from last week’s lows at 0.9840 to levels beyond parity, with the market focusing on the Fed’s monetary policy meeting, due later this week.

The Swiss currency (CHF) pair braces for the third monthly gain as it pokes a joint of the 100-SMA and the 50-SMA.

Given the firmer RSI (14) and the bullish MACD signals, not to forget the pair’s sustained trading beyond a three-day-old ascending trend line, USD/CHF prices are likely to remain firmer.

However, a clear upside break of the 0.9980 hurdle appears necessary for the buyers to meet the 1.0000 psychological magnet.

Following that, multiple hurdles around 1.0080 could probe the USD/CHF pair’s upside ahead of challenging the yearly top of 1.0148. In a case where the quote remains firmer past 1.0150, the April 2019 peak surrounding 1.0240 will gain the market’s attention.

Meanwhile, the pullback move remains elusive unless the quote stays beyond the aforementioned support line from Wednesday, close to 0.9920 at the latest.

Should the USD/CHF bears manage to conquer the 0.9920 support, the 0.9900 threshold and the monthly low near 0.9840 will be on their radar.

From a technical perspective, the pair has confirmed its near-tern bullish bias breaching the 200-hour SMA at the 0.9980 area, which is now acting as support. On the upside, the pair is struggling against a resistance area at 1.0030 (October 24,25 highs) which would open the path toward a three-year high at 1.0145.

On the downside, the mentioned 200-hour SMA at the 0.9980 area is keeping bears at a bay. Below here, the next potential targets are October 30 low at 0.9945 and October 27 high at 0.9920/25.

Overall, USD/CHF is likely to remain firmer but the upside room appears limited.

Hawkish momentum stays restricted to 1.01471

Oct 31 2022