Seesaws near 20-DMA resistance above 0.9200
USD/CHF consolidates the biggest daily gains in two weeks.
Descending Momentum line, multiple failures to cross 20-DMA tease sellers.
200-DMA, seven-week-old support line restrict short-term downside.
Two-month-old horizontal area offers extra challenge for bulls.
USD/CHF treads water around 0.9235-40, down 0.10% intraday heading into Monday’s European session. In doing so, the Swiss currency (CHF) pair marks another failure to cross the 20-DMA.
In addition to the pullback from the short-term moving average, around 0.9240 by the press time, the downward sloping Momentum line also favors the pair sellers.
However, 200-DMA and an ascending support line from early November, respectively around 0.9180-75, become a tough nut to crack for the USD/CHF sellers.
Should the quote drop below 0.9175 support, a bit broader support line from August, close to 0.9125, will be on the bear’s radar.
Alternatively, a clear upside break of the 20-DMA level of 0.9240 isn’t a green pass to the USD/CHF buyers as multiple tops marked since October 18 challenge the pair’s further advances near 0.9275.
If at all the pair buyers keep reins past 0.9275, the 0.9300 threshold and November’s peak of 0.9373 will be in focus.
USD/CHF: Daily chart
Trend: Pullback expected