USD/CHF forms a bullish engulfing chart pattern and rises by over 0.58% on Tuesday, clearing key resistance levels, including the 50-day Simple Moving Average (SMA) at 0.7868. At the time of writing, the pair trades at 0.7890, shy of 0.7900.
USD/CHF Price Forecast: Technical outlook
The USD/CHF pair recovered after reaching a nearly two-month low of 0.7761 on May 8. Since then, the pair edged higher as the Greenback—underpinned by high US Treasury yields—soars to five-week highs, according to the US Dollar Index (DXY).
Momentum is bullish as shown by the Relative Strength Index (RSI). Therefore, further upside is seen in the USD/CHF pair.
If buyers claim 0.7900, the immediate resistance would be the 200-day SMA at 0.7916. A move beyond that area will expose the 0.8000 figure. On further strength, the next resistance would be the January 15 high at 0.8041.
USD/CHF Price Chart – Daily
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