FxWirePro: USD/CHF momentary bulls on verge of extending inverted H and S pattern, bears in major trend pop up shooting star channel resistance

On daily charts, the pair forms inverted head and shoulder pattern, with the head at 0.9537 levels, shoulder 1 at 0.9633 levels and shoulder 2 at 0.9649 levels.

More upswings likely to extend up to neckline at 0.9823 on sustenance above DMAs and on a breach above resistance at 0.9761 levels.

But bulls losing momentum at this level have been going in sideways, however, sensing the strong support at 0.9723 levels (21DMA). The current price holding stronger 7DMAs.

Leading oscillators (RSI and stochastic) on daily terms have been contracting with each other.

RSI evidences the bullish convergence to the prevailing upswings.

Whereas the stochastic curves are popping up with ambiguous views to the RSI as %D crossover has been signalling more selling interests in this pair.

On a broader perspective, the pair could not hold onto major resistances at 0.9789 levels (upper channel line), and has been declining through the sloping channel. In the recent past, the shooting star pattern is also traced out at 0.9800 levels, as a result, you could see shrinks in buying momentum.

Evidently, after the rejection of channel resistance, we could see prices have slipped below EMAs.

The Swiss National Bank today has maintained its benchmark interest rate unchanged at record-low levels of -0.75%. The Swiss central bank also added that it would remain lively in the foreign exchange market, as necessary.

Hence, the overall major trend still seems to be weaker, while we could foresee momentary gains in this pair upon break out above mentioned pivot points.

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