USD/CHF Price Prediction: More upside dependent on break above 100-day SMA
- USD/CHF is charting a sideways course just beneath its September high and the 100-day SMA.
- The pair is in a short-term uptrend, favoring a extension higher subject to a clear break above the SMA.
USD/CHF flatlines in the 0.8660s after pausing in its run up from the late September lows. The pair is close to the (blue) 100-day Simple Moving Average (SMA), currently situated at 0.8691.
USD/CHF Daily Chart
The short and medium-term trends are bullish and given the principle that “the trend is your friend” the odds favor an extension higher.
That said, USD/CHF has now reached the target generated by the breakout from the late August and September range at 0.8680. This suggests bullish pressure might wane.
A break above the 100-day SMA and the 0.8700 level would confirm a further extension to the 0.8750 resistance level (August 15 high).
The Relative Strength Index (RSI) momentum indicator is still not in overbought suggesting the pair has room for more upside.
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