USD/CHF’s rally stalls at 0.8900

Under 0.9000, the USD/CHF pair encounters resistance, and it declines for the first time in three days. After two consecutive days of advances, the pair has dropped, down 0.17%, after reaching a weekly high of 0.8996. Prior to the closing of Wall Street, the USD/CHF is trading at 0.8969 at the time of writing.

The USD/CHF daily chart depicts the major as negatively biassed, losing approximately 3% annually, from a technical standpoint.

Last Friday, however, the USD/CHF pair ended a streak of three straight days of losses, generating a bullish piercing pattern that was unable to rise over the psychological level of 0.9000. The USD/CHF is pulling back, but the Rate of Change indicates that buyers are outpacing sellers, which might make a push to the level of 0.9000 possible.

If USD/CHF breaks through the latter, the 20-day Exponential Moving Average (EMA) at 0.9065 and the 0.9100 level will become visible. The 50-day EMA at 0.9164 could be reached by the USD/CHF after it has been cleared.

On the other hand, once the USD/CHF breaks below 0.8921, a bearish continuation will start up again. The 0.8900 mark will be revealed at a breach of the latter, followed by the YTD low at 0.8859.