Technical Analysis – USDCHF continues bullish action in short and long terms
Posted on April 9, 2019 at 11:45 am GMT
Melina Deltas, XM Investment Research Desk
USDCHF is heading upwards after it posted a strong rebound on the 23.6% Fibonacci retracement level of the upleg from 0.9185 to 1.0130 around the 0.9900 psychological level.
Technically, the red Tenkan-sen line is pointing north, indicating a bullish action, however, the RSI is moving near the neutral threshold of 50.
Immediate resistance is coming from the 40-simple moving averages (SMA) currently around 1.0000, which is standing near the upper surface of the Ichimoku cloud. A jump above these lines could shift traders’ eyes at the 20-month peak of 1.0130. A daily close above this level could prove challenging for the bulls but doing so would shift the attention up to the next barrier of 1.0170.
On the other hand, a downside reversal would likely retest the 20-SMA around 0.9970, while even lower the 23.6% Fibonacci region of 0.9900 and the 0.9890 support level are would come into focus. A drop below this area could confirm another bearish rally until the long-term ascending trend line around 0.9850.
In the long-term outlook retains a bullish structure, while in the medium-term, USDCHF has been stuck in a range between 0.9715 and 1.0130.