USD/CHF Price Forecast: Inverted head-and-shoulders form, eyes on 0.80

The USD/CHF advances some 0.30% on Monday, as an inverted ‘head-and-shoulders’ chart pattern is confirmed, along with price action leaving the 200-day Simple Moving Average (SMA) below the current spot price. The pair trades near 0.7981.

USD/CHF Price Forecast: Technical outlook

Price action turned bullish since last Friday, after USD/CHF cleared the 200-day SMA at 0.7903, opening the door to further upside. Also, an inverted ‘head-and-shoulders’ chart pattern, formed, which sets the stage for further gains.

Momentum as measured by the Relative Strength Index (RSI) popped above the 60 region, bullish and with room before turning overbought. That said, the USD/CHF could test the 0.8000 level in the near term.

If the pair clears the 0.8000 mark, the next resistance would be the January 15 high at 0.8040. On further strength, the next stop would be the ‘head-and-shoulders’ measured objective near 0.8045-0.8050, ahead of the November 25 daily high of 0.8102.

On the flip side, the USD/CHF could edge lower if sellers drive price action below the 200-day SMA, opening the door to a challenge of 0.7800.

USD/CHF Price Chart – Daily