The USDCHF climbs to its peak in nearly five months.

The USDCHF surged to its highest level in almost five months, extending its upward trajectory within a broader bullish channel and reaching a new multi-week peak on Wednesday, marking its highest point since November 2nd.

Bullish momentum gained further traction following the unexpected rate cut by the Swiss National Bank (SNB) last week, intensifying pressure on the Swiss franc. This ongoing pressure, coupled with a sustained breach above the key psychological barrier at 0.90, reinforces the pair’s bullish outlook.

Moreover, the recent formation of a double golden cross (10/200 and 20/200-day moving averages) and robust bullish momentum provide additional support to the upward movement. However, caution is warranted as daily indicators indicate overbought conditions, suggesting a potential pause or shallow correction in the near term.

Previously breached Fibonacci resistance levels at 0.9028 and psychological support at 0.9000 have now switched roles, acting as supports. These levels, along with the daily Tenkan-sen at 0.8945, are expected to cushion any downward moves, thereby preserving the bullish structure. The next upside target lies at 0.9112, representing the high of November 1st.

Res: 0.9071; 0.9112; 0.9181; 0.9244

Sup: 0.9028; 0.9000; 0.8945; 0.8895