USD/CHF finally moved above 50 SMA – is it a reversal?
USD/CHF Technical Analysis
The H4 outlook of the USD/CHF chart shows signs of a possible reversal. Since March, the currency pair USD/CHF has been moving in a bearish trend. The prices have tried many times to rebound, but the 50-SMA has seemed to stop its efforts all the time.
However, the price has now moved past above the 50 period Simple Moving Average, and it has suddenly increased the bullish pressure. The prices are even moving towards 100-SMA at 0.89728. This sudden jump is only due to the previous failed attempts to break above the 50-SMA.
Furthermore, the prices have been moving under the descending trendline starting from the 8th March high at 0.94385. It has been a major resistance for the USD/CHF pair; however, now the prices have clearly moved past above the descending trendline, indicating a possible reversal ahead. Now traders must keep a close eye on the 0.89728 level, where the initial resistance lies. It is also the same level where 100-SMA is standing. Any break above this level could mean massive bullish pressure and a definite trend reversal.
