USDCHF gains momentum amid improved US dollar sentiment | Forexlive

The USDCHF is experiencing an upward trend as the US dollar strengthens. The currency pair has risen above its 100-hour moving average at 0.8953. Last Tuesday, the price fell below this moving average near 0.9059 and continued to decline, reaching a low of 0.8859 on Thursday (-200 pips in 2-3 days). On Friday, the low price halted at 0.8866 before rebounding to close at 0.8937. The Friday high nearly touched the 38.2% retracement of the week’s trading range, but found willing sellers.

The declining 100-hour moving average and the rising price on Friday, allowed for a shift of the short-term bullish bias after breaking above both the 100 hour moving average and the 38.2% retracement today. However, the USDCHF has been on a longer-term downtrend (the chart above is down from left to right), so more work is needed to solidify the bullish sentiment.

To boost buyer confidence, the currency pair needs to surpass the 50% retracement of last week’s decline at 0.8989 and the descending 200-hour moving average, currently at 0.9006. Over the past month, the USDCHF has occasionally risen above its 200-hour moving average, with the most recent occurrence on April 10. However, these gains were short-lived, and the price consistently fell back with downward momentum.