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USDCHF raises bid to print first daily profit at four.
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Easing bearish bias of the MACD, clear bounce off fortnight-old support keeps buyers hopeful.
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The weekly resistance line challenges intraday buyers before the key barrier consisting of the 200-SMA, 50% Fibonacci retracement level.
USDCHF extends the previous day’s rebound from a fortnight-old support area to 0.9870 during early Wednesday morning in Europe. In doing so, the Swiss currency (CHF) pair jostles with a downward-sloping resistance line from the last Friday.
Given the quote’s successful rebound from the short-term key support area around 0.9840, coupled with the MACD’s recent bearish bias, USDCHF prices are likely to remain firmer.
As a result, the quote may cross the immediate trend line barrier near 0.9875, allowing buyers to aim for the pair’s 61.8% Fibonacci retracement level near 0.9900, the end of September-October.
However, it should be noted that a convergence of the 200-SMA near 0.9945 and the 50% Fibonacci retracement level appears to be a tough nut for USDCHF bulls to crack and trigger a pullback later.
If the quote remains firmer past 0.9945, the odds of witnessing a run-up toward the parity level can’t be ruled out.
Alternatively, the aforementioned horizontal support near 0.9840 restricts short-term USDCHF declines, a break of which could direct the bears towards the previous monthly low near 0.9780 and then to the 0.9740 level comprising the late September swing low.
USDCHF: Four-hour chart
Trend: Limited recovery expected
ADDITIONAL IMPORTANT LEVELS
