FxWirePro: USD/CHF rallies may lead to bull trap, downtrend to prolong as bears resume at channel resistance with 21DMA crossover

USDCHF yet again seems tighter at 0.9950 (i.e. channel resistance) in terms of valuations after rejecting channel line resistance.

The pair could not hold onto major channel resistances at 0.9936 levels. Subsequently, bears have managed to break below crucial supports at DMAs, 0.9823 and 0.9786 levels.

That is where we could spot out 21DMA crossing over 7DMA which is again a sell signal.

On the flips side, it was neither ready to give up below 7DMA and testing this juncture as a resistance nor does it fly away. MACD is also in favour of bears, attempting to enter into the bearish zone.

Daily oscillators (both RSI & Stochastic) are absolutely puzzling with indecision but the same on monthly are hinting the momentum in bearish pressures in the weeks to come.

Hence, at the current juncture, we foresee the on-going price rallies as the deceptive swings that could get you in a bull trap, instead see 0.9662 as a strong resistance level.

On monthly terms, although dollar showing much volatility against Swiss franc from last couple of months or so, it has remained well within the range of sloping channel.

A beautiful tug of war between bulls and bears as the pair has been able to bounce back to channel resistance but bears winning in the end of the game.

Contemplating the above technical reasoning, it is good to stay short in mid-month futures for southward targets of 0.9519 levels.