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USD/CHF Approaches 0.90 and A Falling Channel Resistance

The USD/CHF has broken above the 200,100 and 50 moving averages as well as complete a double bottom in the daily chart.

Price is now approaching 0.90. Around 0.90, there is a falling channel resistance, connecting the 0.9248 and 0.9158 resistance pivots. A break above 0.90 and the falling trendline open sup the 0.9150-60 resistance area, which is reinforced by another falling trendline.


(usdchf, daily chart, 5/28)

The daily stochastic oscillator is showing a bearish divergence at overbought levels, and the RSI is slightly overbought. If there is a pullback from the 0.90 resistance area, monitor the 0.8850-0.8860 level. If the market can hold above this, it holds above the middle of the consolidation pattern, and the bullish outlook remains in play. A break below 0.8850 however, refocuses the USD/CHF towrad the 2014-lows around 0.87.