• USDCHF loses momentum after slightly surpassing 0.9000

• A pullback is likely, but the bullish trend could stay intact  

 

USDCHF stretched its three-week rally above the 0.9000 threshold for the first time in four months, but the 0.9036 region has been a hurdle over the past few days, pushing the price softly to the red zone during Thursday’s European trading hours.

The RSI and the stochastic oscillator justify the pullback in the price as the indicators hint at overbought conditions. The widened Bollinger bands are pointing to a change in sentiment too. Yet, with the pair trading comfortably above its 20-day exponential moving average (EMA) and back within a bullish channel, buying interest may not entirely fade out. Note that the 20-day EMA has posted a bullish crossover with the longer-term 200-day EMA, adding more credence to the 2024 positive trend.

The pair could still pivot around the 0.8965 support zone before testing the 20-day EMA and the ascending trendline at 0.8916. Slightly lower, the 200- and 50-day EMAs could prevent further losses around 0.8855. If these lines prove easy to pierce, the bears could drive towards the 0.8755-0.8787 region and then down to 0.8680, where the 38.2% Fibonacci mark is situated.

In the positive scenario, where the price successfully claims the 0.9035 barrier, it could immediately encounter resistance around the 0.9100 round level. A victory there might add more fuel to the bullish wave, lifting the price up to the 2023 top of 0.9243, where the ascending line from January is located.

Summarizing, the upward pattern in USDCHF is expected to hold as long as the123support trendline from December's lows remains intact the even though a consolidation phase above 0.8855 cannot be excluded.