- The USD / CHF traded with a positive bias for the sixth consecutive session on Monday.
- Bulls should wait for a sustained movement beyond the very important 200-DMA.
USD / CHF built on last week’s positive move by around 300 pips and continued to gain ground for the sixth consecutive session on Monday.
The pair climbed to almost two weeks in the past hour, with the bulls now looking to extend the momentum past the 0.9800 mark.
The mentioned handle is close to the very important 200 day SMA around the 0.9810 region, which, if cleared, could be seen as a new trigger for bullish traders.
Meanwhile, the technical indicators on the daily chart have just started to enter positive territory and further strengthen the prospects for further expansion of the positive movement.
Therefore, some tracking strength, to challenge resistance from the downtrend line for almost a year near the 0.9900 mark, now seems a separate possibility.
On the other hand, any significant withdrawal could still be seen as an opportunity to initiate new bullish positions and should remain limited near the 0.9715-10 region.
Failure to defend the support mentioned could lead to an aggressive technical sale and lead the pair to their next support near the region of 0.9625.
USD / CHF daily chart