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    Technical Analysis – USDCHF rises to 5-year high; bias is bullish

    USDCHF climbed to a fresh 5-year high on Friday, passing the 1.03 handle for the first time since August 2010. The pair has spent much of the year attempting to recover from the January tumble when the Swiss National Bank removed the franc’s cap against the euro.

    The post October FOMC rally has taken prices sharply above the Ichimoku cloud and the 200-day moving average, shifting the medium-term outlook to a decisively bullish one. The near term bias also remains strongly bullish. However, with both RSI and the stochastics in overbought territory, further strong gains may be limited in the short term.

    The next resistance for the pair is the 1.04 level, which would set it a new a 5-year high. To the downside, the nearest support is provided by the Kijun-sen line at 1.0041. A break below this level would weaken the bullish bias.

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