USD/CHF Price Analysis: Charts signal bull fatigue after four-day winning run
- USD/CHF has turned lower from the key resistance area.
- The short duration charts show scope for a pullback.
USD/CHF's short duration technical charts are pointing to bull fatigue.
While the hourly chart relative strength index has diverged in favor of the bears, the 4-hour chart has breached an ascending trendline.
The pair could pull back to the ascending 50-hour moving average (MA), currently at 0.9730. If that level holds, the bulls could challenge the recent high of 0.9767 (Jan. 29 high). The area around 0.9767 has proved a tough nut to crack twice in the last four weeks. So, a close above 0.9767 is needed to invite stronger buying pressure.
On the other hand, acceptance under the 50-hour MA of 0.9730 would expose the 10-day MA at 0.9704.
At press time, the pair is trading at 0.9743, representing marginal losses on the day. The pair ended higher for the fourth straight day on Thursday.