Tight range for USD/CHF

USD/CHF is currently trapped in a tight range and break to either side with ensure extended move in that direction. On the upper side, the first level that is important is 0.8875 which is acting top of current channel and break of that will set 0.9000 level as next target which also is a psychological level and break above that will surely extended the upward trend.

On the lower side 0.8700 level is the first target and break of that will set 0.8560 level as next target and in case USD/CHF manages to break below that level, it will look to targets very much in an extended downward range.

Looking at the moving averages used in the daily charts, it can be seen that the medium term and long term holds the key of the long term trend. USD/CHF is enclosed by the long term and the short term moving averages and once it manages to break either of them, it will enable USD/CHF to take an extended move. On the upper side, the medium term moving average is around 0.8900 level and on the lower side long term moving average is around 0.8700 level. The RSI is around 48 in daily charts and seems to play no role in determining the direction of the trend.

 

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