USDCHF is closing in on the mid-Bollinger band at 0.8918 after improving from the recently formed near 71-month bottom of 0.8820. The pair remains dominated by a strong bearish stance, also being exhibited from the downward sloping simple moving averages (SMAs).
However, the short-term oscillators are displaying a slight pickup in positive sentiment. The MACD, in the negative area, is increasing above its red trigger line, while the RSI is trying to sustain its push higher in bearish territory. Moreover, the stochastic oscillator is strongly positive, promoting improvements in price.
In a positive scenario, resistance may originate from the 0.8918-0.8946 region between the nearby highs, which also contains the mid-Bollinger band. Stepping above this, the resistance section of 0.8981-0.9009 could test the climb ahead of the 50-day SMA of 0.9027 hovering overhead. Advancing above this, buyers may then be challenged by the zone from the upper Bollinger band at 0.9061 until the adjacent 0.9093 key high, which also encompasses the 100-day SMA.
If sellers resurface, initial support could arise from the 0.8835 level until the 0.8820 mark, which happens to be the multi-year low and the 150.0% Fibonacci extension of the up leg from 0.9182 to 0.9900. Sliding further, the pair may target the lower Bollinger band at 0.8769 and the 161.8% Fibo extension of 0.8739, slightly beneath. More losses from here could then sink the price towards the 176.4% Fibo extension of 0.8635.
All in all, USDCHF continues to demonstrate a dampening picture in the short-to-medium-term timeframe. An initial move either below 0.8820 or above 0.8946 could signal the next short-term direction.
