USD/CHF Price Analysis: Bulls are firmer above 20-EMA, a fresh three-year high looks likely
17.05.2022, 04:33

USD/CHF Price Analysis: Bulls are firmer above 20-EMA, a fresh three-year high looks likely

  • The 20-period EMA (High-Low) has acted as a major cushion for the asset.
  • A (60.00-80.00) bullish range action in the RSI (14) is underpinning the greenback bulls.
  • A breach of the May 2019 high will expose the asset to a fresh three-year high.

The USD/CHF pair is going through a volatility contraction phase after easing from a high of 1.0064 recorded on Monday. The asset is oscillating in a narrow range of 1.0018-1.0022 from the Asian session and is expected to continue its directionless structure till the release of the US Retail Sales.

The pair has been displaying a perpendicular rally right from the first trading session of April. On a four-hour scale, the asset is trading in a Rising Channel chart pattern whose upper boundary is placed from April 28 high at 0.9759 while the lower boundary is plotted from March 5 low at 0.9710. The 20-period (High-Low) Exponential Moving Average (EMA) band has been a major cushion for the greenback bulls.

A (60.00-80.00) bullish range action in the momentum oscillator, Relative Strength Index (RSI) (14) is confirming more upside ahead.

The asset is expected to continue its upside momentum after surpassing Friday’s high at 1.0064. This will send the asset towards a 30 May 2019 high at 1.0098. Violation of the May 2019 high will expose the asset to a fresh three-year high at 1.0122.

Alternatively, a decisive move below Friday’s low at 0.9992 will drag the asset towards the round level support at 0.9900, followed by Wednesday’s low at 0.9872.

USD/CHF four-hour chart

 

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