USD/CHF Price Analysis: Bulls are hopeful on bullish pennant formation, 0.9500 eyed

• A bullish pennant formation has underpinned the greenback bulls against the Swiss franc.
• Ascending 20- and 50-period EMAs add to the upside filters.
• The RSI (14) has been established in a bullish range of 60.00-80.00.

The USD/CHF pair is oscillating in a minor range of 0.9411-0.9439 after displaying a firmer rally from April 14 low at 0.9330. The asset is performing subdued on Easter Monday amid a weak US dollar index (DXY) in early Tokyo.

On a four-hour scale, USD/CHF is forming a bullish pennant chart pattern which signals a directionless move after a strong run towards the north and leads to a further upside if consolidation breaks out decisively. Generally, a consolidation phase denotes the placement of longs by the market participants who didn’t capitalize in the initial rally or those investors place bids, which prefer to enter an auction after a bullish bias sets in. Critical horizontal resistance is placed on March 16 high at 0.9460.

Advancing 20- and 50-period Exponential Moving Averages (EMAs) at 0.9358 and 0.9400 respectively are supporting more upside. While the Relative Strength Index (RSI) (14) is established in a bullish range of 60.00-80.00.

Should the asset surpass the horizontal resistance at 0.9460, bulls will drive the asset towards the psychological resistance at 0.9500 followed by the 5 June 2020 high at 0.9650.

On the flip side, a drop below March 28 high at 0.9382 will send the asset towards the April 14 low at 0.9324. A breach of the latter will drag the asset towards the April 13 low at 0.9287.

USD/CHF four-hour chart