Crosses 78.6% Fibo to renew its 29-month high around 0.9950

  • USD/CHF hits its highest levels since December 2019, rising for three consecutive days.
  • Overbought RSI conditions may test the bulls ahead of the 1.0015-30 area.
  • The bears remain cautious until they see a clear breakout of the 200-week SMA.

Like other major currency pairs, USD/CHF also depicts the surge in the US Dollar during Monday’s first European session. In doing so, the Swiss currency pair (CHF) rises for the third day in a row to post the highest level in more than two years.

The bullish momentum breaks the 78.6% Fibonacci retracement (Fibo.) from April 2019 to January 2021. However, the overbought conditions on the RSI put the further rise in the quotation into question.

If USD/CHF prices remain firmer above the key 0.9920 Fibo level, several highs made between June and November 2019 around 1.0015-30 will be difficult for pair buyers to break.

Alternatively, a daily close below 0.9920 will need to be validated from the round number of 0.9900 before steering the bears towards the May 2020 peak around 0.9800.

In an event that USD/CHF remains bearish above 0.9800, the 61.8% Fibonacci retracement and the 200 week SMA around 0.9675 and 0.9525 respectively will be crucial for bears follow.

Overall, USD/CHF bulls should face some headwinds, but the overall trend remains positive.

USD/CHF: weekly chart

Trend: expected decline