- USD/CHF struggles to gain any meaningful traction and remains confined in a narrow band.
- The formation of an ascending triangle on hourly charts supports prospects for further gains.
- A convincing break below the 0.8200 mark will be seen as a fresh trigger for bearish traders.
The USD/CHF pair extends its consolidative price move through the Asian session on Wednesday and remains confined in a range held over the past two weeks or so amid mixed cues. The emergence of some US Dollar (USD) buying lends some support to spot prices, though reviving safe-haven demand acts as a headwind.
Looking at the broader picture, the recent bounce from the vicinity of mid-0.8100s, or the lowest level since April 22 touched last week, has been along an upward-sloping line. This, along with a strong horizontal barrier near the 0.8245-0.8250 region, constitutes the formation of an ascending triangle on hourly charts and favors the USD/CHF bulls. However, it will be prudent to wait for a convincing breakout through the said hurdle before positioning for any further gains.
Spot prices might then surpass an intermediate hurdle near the 0.8275 area and aim to reclaim the 0.8300 round figure. The momentum could extend further toward the next relevant resistance near the 0.8325-0.8330 supply zone. Some follow-through buying will suggest that the USD/CHF pair has formed a near-term bottom and pave the way for additional gains.
On the flip side, the ascending trend-line support, currently pegged just above the 0.8200 mark, might continue to protect the immediate downside. This is followed by the monthly swing low, around the 0.8155 region, which if broken, will be seen as a fresh trigger for bearish traders. The subsequent downfall could drag the USD/CHF pair to the 0.8100 round figure en route to the April swing low, around the 0.8040 region, or the lowest level since September 2011.
USD/CHF 4-hour chart
