Bulls keep eyes on 0.9300

USD/CHF continues to consolidate gains on Tuesday in the Asian session.
Additional gains for pair if price decisively breaks 0.9300.
MACD holds onto the overbought zone with receding upside momentum.

USD/CHF trades cautiously on Tuesday in the initial Asian trading hours. The pair confides in a narrow trade band of less than 10-pips movement.  At the time of writing, USD/CHF is trading at 0.9277, down 0.01% for the day.

USD/CHF daily chart

On the daily chart, after testing the five-month high near 0.9368, the USD/CHF pair failed to preserve the momentum and touched the intraday low of 0.9230 in the previous week. Now, the pair is hovering in a limiting trading range. The sluggish price movement in today’s session suggests indecisiveness among traders. Furthermore, the price trades above the 21-day Simple Moving Average (SMA) at 0.9270. 

Having said that, If the price sustains the intraday high, it could immediately test the psychological 0.9300 mark. The Moving Average Convergence Divergence (MACD) trades in the overbought zone. Any uptick in the MACD would encourage the USD/CHF bulls to take over the high made on October 1 at 0.9337. Furthermore, the spot would likely testify to the 0.9360 horizontal resistance level.

Alternatively, a break beneath the 21-day SMA could reverse the trade direction with the previous day’s low at 0.9250 as the first downside target. A daily close below the ascending trendline from the lows of 0.9018 made on August,4 would open the gates for the 0.9235 horizontal support level followed by the September 16 low of 0.9193.

USD/CHF additional levels