Market Analysis

Technical Analysis: USD/CHF heading towards reaching the multi-month top

The USD/CHF pair caught some fresh bids on Wednesday and has now moved back closer to near four-month tops touched in the previous session. There was an important level at 0.9014 that was used as the Point of Control level. This level was important to be broken for bullish traders to take that advantage.

Bull side is now opened for upwards profit-taking points that we believe will be used by bulls who took their position once the price went above 0.9014. 

Three signs were proving that bulls are taking USDCHF under control. First was when the daily candle was closed above 0.9014. The second was retest that made this level of newfound support, and the third was once candlestick pattern (3 white soldiers) was in place. 

A fresh leg up in the US Treasury bond yields helped revived the US dollar demand. Apart from this, the prevalent risk-on mood undermined demand for the safe-haven Swiss franc and provided a goodish lift to the USD/CHF pair.