After reversing to the upside in the beginning of this week, USD/CHF continues to grind higher, while balancing above a short-term tentative upside line taken from the low of October 23rd. At the same time, the pair is now breaking one of its key resistance areas, at 0.9165, which acted as a good resistance from the beginning of October. For now, everything looks positive, hence why we will aim for slightly higher areas.
A further push north, above the 0.9165 barrier, marked near the highs of October 14th and 19th, could attract more buying interest. If so, the next possible target might be at 0.9197, which is the high of October 8th. The rate may stall there for a bit, or even correct slightly lower. That said, if USD/CHF remains above either the 0.9165 hurdle, or the aforementioned upside line, we will stay positive, at least with the near-term outlook. Another push higher could bring the rate towards the 0.9197 hurdle again, a break of which might set the stage for a push to the 0.9218 level, marked by the highest point of October.
The RSI and the MACD on our 4-hour chart are pointing to the upside. In addition to that, the RSI is above 50 and the MACD remains above zero and its trigger line. The two indicators currently support the idea of aiming for higher areas.
Alternatively, if the pair reverse back down, breaks the previously-mentioned upside line and falls below the 0.9128 hurdle, marked by the high of October 28th, that may allow more sellers into the game, as such a move might signal a change of the short-term uptrend. USD/CHF could then drift to the 0.9110 obstacle, or even the 0.9088 hurdle, marked by the low of October 29th. If the selling doesn’t stop there, the next possible support area might be at 0.9061, marked by the low of October 27th.
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