USDCHF’s attempts to navigate towards the looming long-term restrictive trend line may not be in vain, even though its positive spark seems to be fading. As mentioned, the bullish impetus appears to be withering from its fresh nine-month high of 0.9472, however, the Ichimoku lines are suggesting that the upward pattern’s sentiment remains intact. Adding credence to the upside is the advancing slopes of the 50- and 100-day simple moving averages (SMAs) and the recent bullish crossover from the 50-day one.
The short-term oscillators are reflecting the recent minor damage to the pair’s climb. The MACD, far above zero, remains above its red trigger line, while the RSI is struggling to overcome the 70 level. The negative charge in the stochastic oscillator is favouring the price pullback. Noteworthy though, are the present conflicting signals in directional momentum but also the nearing bullish overlap of the 200-day SMA by the 100-day one, which could back additional gains.
If the retreat gains pace, initial downside limitations may arise from the 0.9361-0.9377 border. Fading further could motivate the bears to challenge the support zone between the red Tenkan-sen line at 0.9350 and the blue Kijun-sen line at 0.9303. Sliding beneath this may then generate downward momentum for sellers to target the critical 0.9191-0.9225 support base.
If buyers manage to propel the pair above the roof of 0.9458-0.9472, the long-term falling trend line could quickly come into focus. Next, should the bulls violate this diagonal line to the upside, as well as the adjoining 0.9531-0.9553 resistance section, the price may then catapult towards the 0.9650 high.
Summarizing, for USDCHF’s three-month price improvement to prevail, the price would need to overcome the long-term descending line and the boundary of 0.9531-0.9553. Yet, a downward shift past 0.9191-0.9225 could ignite stronger negative tendencies.