USDCHF extends the previous day’s rebound from a fortnight-old support area to 0.9870 during early Wednesday morning in Europe. In doing so, the Swiss currency (CHF) pair jostles with a downward-sloping resistance line from the last Friday.
Given the quote’s successful rebound from the short-term key support area surrounding 0.9840, coupled with the recently easing bearish bias of the MACD, the USDCHF prices are likely to remain firmer.
As a result, the quote may overcome the immediate trend line hurdle near 0.9875, which in turn could allow buyers to aim for the 61.8% Fibonacci retracement level of the pair’s late September-October upside, close to 0.9900.
It should, however, be noted that a convergence of the 200-SMA and the 50% Fibonacci retracement level, near 0.9945, appears a tough nut to crack for the USDCHF bulls and trigger the pullback afterward.
If the quote remains firmer past 0.9945, the odds of witnessing a run-up toward the parity level can’t be ruled out.
Alternatively, the aforementioned horizontal support near 0.9840 restricts short-term USDCHF declines, a break of which could direct the bears towards the previous monthly low near 0.9780 and then to the 0.9740 level comprising the late September swing low.

Trend: Limited recovery expected
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