USD/CHF Price Forecast: Bullish engulfing puts 0.8400 in play
USD/CHF advances for the third straight day, registering modest gains of 0.09% on Tuesday, with the pair recovering some ground after hitting a monthly low of 0.8191 last Friday. The pair exchanges hands at 0.8282 with buyers eyeing the 0.8300 mark.
USD/CHF Price Forecast: Technical outlook
Price action shows that the trend is up as the market structure of higher highs and higher lows is respected. Also, the formation of a ‘bullish engulfing’ candle pattern last week was confirmed on Monday, with USD/CHF clearing the October 23 high of 0.8256, which exacerbated the continuation of the trend.
Momentum turned bullish as depicted in the Relative Strength Index (RSI). Therefore, as price action and the RSI confirm, the USD/CHF path of least resistance is upward.
The first area of interest would be the 0.8300 mark. A breach of the latter will expose the October 15 high of 0.8354, with the next stop at 0.8395, the October 14 swing high. Once cleared, 0.8400 is up next, followed by the May 12, 2025 high of 0.8476.
For a bearish reversal, the first support for USD/CHF is Monday’s low of 0.8232. Below is the 50-day Simple Moving Average (SMA) of 0.8202, followed by the 0.8200 figure. A move past that area clears the way towards the 100-day SMA at 0.8143.
USD/CHF Price Chart – Daily
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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