USD/CHF Price Analysis: Bulls keep reins beyond 0.9700 support confluence

• USD/CHF stays mildly bid around weekly low, reverses pullback from two-year high.
• 50-SMA, three-week-long ascending trend line restricts short-term downside.
• Further upside eyes 20-SMA, weekly resistance line ahead of 2020 peak.

USD/CHF reverses the previous day’s pullback from a two-year high as buyers attack 0.9750 heading into Thursday’s European session.

In doing so, the Swiss currency (CHF) pair portrays a recovery from a convergence of an upward sloping trend line from April 12 and 50-SMA, around 0.9700.

Given the firmer RSI, the USD/CHF pair’s recent rebound is likely approaching the 20-SMA level surrounding 0.9770. However, an ascending trend line connecting multiple tops marked since April 28, around 0.9825, will challenge the bull’s dominance.

In a case where USD/CHF rises past 0.9825, the year 2020 high of 0.9900 will be in focus.

Alternatively, a clear downside break of the 0.9700 support confluence won’t hesitate to refresh the weekly low under 0.9670.

Following that, late April’s swing high around 0.9590 and the 0.9500 round figure will be on USD/CHF bear’s radar.

USD/CHF: Four-hour chart

Trend: Further upside expected