November 01, 2018
USD/CHF is trading in a bull trend above its major and minor moving average on the chart. USD/CHF bulls are driving the market well above the parity level as bulls have surpassed the 2018 high at the 1.0069 level. Improving risk-appetite continues to dent CHF’s safe-haven status. USD regains grip after upbeat ADP report and remains supportive. A continuous improvement in global risk appetite, as depicted by a positive tone around equity markets, was seen denting the Swiss Franc’s safe-haven status and helped limit initial downtick.
From technical prospective we can see that an uptrend line is also lying on the daily chart which is providing strength to the bulls. USD/CHF is trading in a bull trend above the 200-period simple moving average. Recently bulls has given us the breakout of resistance level i.e. 1.0062, which is a recent development on the daily chart. Well it’s a valid or false breakout we are not sure for the time being but yes the momentum is with the bulls so the probability is very high that it’s a valid breakout. On the flip side, a bear breakout below 1.000 would likely invalidate the current bullish momentum.
In our previous report we also mentioned that buy this pair and we are hoping that traders and investors must have made profit from this pre-anticipated move. Overall odds are in favor of bulls and intraday bias remains bullish on pair as long as 0.9890 levels remains intact. RSI indicator is trading and moving in positive territory which is favoring the bulls and MACD indicator has also given the bullish crossover which is providing us bullish signal on the daily technical chart. The MACD indicator is bullish suggesting more gains while the RSI and Stochastic are in the overbought zone, which are suggesting that some correction can’t be ruled out.