USD/CHF Price Analysis: Firm march towards the 0.9800 level

• USD/CHF extends its rally to four straight days, refreshing seven-week highs.
• Solid resistance lies around the confluence of the upper trend line of an ascending channel and a psychological price level around 0.9800.

The USD/CHF is advancing strongly after hitting a daily low at 0.9726. in the North American session. USD/CHF is trading at 0.9758 after reaching a seven-week high at 0.9807.

USD/CHF Price Analysis: Technical Outlook

During the day, USD/CHF touched a seven-week high, above the 0.9800 figure, although it was short-lived. The largest fell back towards current exchange rates. However, oscillators, in particular the Relative Strength Index (RSI), signal that buyers still have some fuel left in the tank to retest the mentioned level, which, once surpassed, could pave the way to July 14 swing high at 0.9886.

Otherwise, USD/CHF could consolidate around the 0.9700-0.9800 range ahead of the release of Swiss CPI figures on Thursday and US Non-Farm Payrolls on Friday.

In the short term, the USD/CHF 4-hour chart is showing an uptrend in a rising channel. The high of the day was the second test of the upper trend line of the channel, and the sellers stepped in, dragging the pair 50 pips lower. USD/CHF traders should note that the day’s high was reached when the Relative Strength Index (RSI) peaked in overbought conditions. Therefore, once the RSI fell, then a retest of the 0.9800 figure is on the cards.

The first resistance for USD/CHF would be the R1 pivot at 0.9777. Once broken, the next supply zone would be the figure and the upper trend line of the channel around 0.9800. On the other hand, the first support for USD/CHF would be the daily pivot at 0.9722. If the latter is broken, the pair will head towards the 20 EMA at 0.9709, followed by the 0.9700 mark.

Key USD/CHF Technical Levels