USD/CHF Rallies Above 50-Day SMA

USD/CHF trades above the 50-Day SMA (0.8678) for the first time since November, with the exchange rate extending the advance from the start of the week to register a fresh monthly high (0.8729).

USD/CHF Rate Outlook

USD/CHF may no longer respond to the negative slope in the moving average as it extends the advance from the start of the month, with a break/close above the 0.8770 (23.6% Fibonacci retracement) to 0.8800 (50% Fibonacci extension) region raising the scope for a test of the December high (0.8821).

Will keep a close eye on the Relative Strength Index (RSI) as it approaches overbought territory, with a move above 70 in the oscillator likely to be accompanied by a further advance in USD/CHF like the price action from last year.

Next area of interest comes in around 0.8880 (38.2% Fibonacci retracement) to 0.8910 (38.2% Fibonacci extension), but lack of momentum to hold above the 0.8700 (61.8% Fibonacci extension) handle may push USD/CHF back towards the 0.8550 (78.6% Fibonacci extension) to 0.8590 (78.6% Fibonacci extension) area.