USD/CHF bulls take a breather around 0.9210 during Monday’s sluggish Asian session, following a two-day uptrend, as traders await this week’s bumper data/events. Also challenging the Swiss Franc (CHF) pair is the return of Chinese traders after a one-week-long Lunar New Year (LNY) holiday. In addition, a falling wedge continued to develop ahead of the following week’s busy economic calendar in the United States (US). At the time of typing, the USD/CHF exchanges hands at 0.9218, above its opening price by 0.22%.

It’s worth noting that the quote marked the first daily closing beyond the 10-DMA since January 11 the previous day. That said, the upside break of the short-term key moving average joins the bullish MACD signals to suggest the USD/CHF pair’s further upside.

However, a symmetrical triangle formation connecting levels marked since January 06 restricts short-term USD/CHF moves between 0.9235 and 0.9170.

It should be observed that a downward-sloping support line from December 14, 2022, close to 0.9125 by the press time, acts as an extra filter towards the north.

In a case where the USD/CHF bears dominate past 0.9125, the 0.9100 round figure and the monthly low of 0.9085 could act as the last defense of the buyer. As an alternate scenario, the USD/CHF first demand zone would be the January 26 daily low of 0.9158. Once broken, then the pair might dip to the YTD low at 0.9085.

A successful break of the 0.9235 hurdle could propel the USD/CHF buyers toward the monthly peak surrounding 0.9410. It’s worth observing that the August 2022 low near 0.9370 acts as an extra filter towards the north.

Bulls can takeover USDCHF

Jan 30 2023

Stop Loss -0.32%

Holding time 0hr

0.92096

Entry price

0.91797

Stop loss price