- The USD/CHF pair traded with a mild positive bias for the second straight session on Tuesday, trying to build on the overnight strong upsurge.
- The bullish momentum to over one-week tops seems to have paused just ahead of the 61.8% Fibo. level of the 1.0016-0.9693 recent bearish slide.
Given the previous session sustained strength above 200-hour SMA and a subsequent move beyond 50% Fibo. level, the set-up might have already turned in favour of bullish traders and support prospects for additional gains.
Adding to this, the appearance of a bullish golden cross on the 1-hourly chart – wherein 50-hour SMA has already crossed above 200-hour SMA, adds credence to the positive outlook, though bulls are likely to wait for a follow-through buying.
Meanwhile, technical indicators on hourly charts have just eased from slightly overbought conditions and are yet to catch up with the positive momentum on the daily chart, which seemed to be the only factor holding traders from placing aggressive bets.
Beyond the mentioned 61.8% Fibo. hurdle near the 0.9890 region, the pair looks all set to accelerate the up-move towards the 0.9950-60 intermediate resistance before eventually aiming to reclaim the parity mark in the near-term.
Hence, any meaningful dips to 50% Fibo. level, around mid-0.9800s, might still be seen as a buying opportunity and should help limit the downside, though a further deterioration in the global risk sentiment might negate the bullish bias.
USD/CHF 1-hourly chart