Setback Likely for USDCHF Before Uptrend Resumes
USDCHF talking points:
- USDCHF will find it hard to make much more progress near-term and could easily slip back.
- However, it is currently in an uptrend and that should reassert itself once the pair has paused for breath.
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Resistance on the charts for USDCHF
USDCHF has been in an uptrend for almost a month but currently faces strong resistance that could cap the upside near-term before its climb resumes.
USDCHF Price Chart, Daily Timeframe (December 6, 2017 – March 12, 2018)
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As the chart above shows, USDCHF is approaching three major resistance levels:
- At 0.9530 from the trendline joining the February 8, March 8 and March 9 highs.
- At 0.9590 from the trendline joining the December 8, December 26, December 27 and January 10 highs.
- And at 0.9628 from the 100-day moving average.
These are likely to prove tough to break through and failure could lead to a drop back to 0.9400, where both the 50-day moving average and the rising trendline joining the February 16 and March 7 lows provide support. However, that support line suggests that for almost a month now USDCHF has been trending higher and any setback would provide a good entry point for further gains.
To the upside, longer term, the highs close to 0.9845 touched on January 9 and January 10 would then be possible targets.
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--- Written by Martin Essex, Analyst and Editor
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.