The USD/CHF has shown strong gains of over 0.30% on Thursday as the Greenback regains some strength, setting itself up for a solid weekly finish. As the Asian session on Friday begins, the pair is trading at 0.8522, remaining largely unchanged.
In terms of technical outlook, the USD/CHF appears to be neutral to slightly bullish after consolidating within the range of 0.8400-0.8550 throughout September and the initial days of October. The momentum seems to favor buyers, as indicated by a bullish turn in the Relative Strength Index (RSI), suggesting that higher prices could be on the horizon.
However, for the buyers to gain further momentum, they will need to surpass the 50-day moving average (DMA) at 0.8537. If they manage to do so, the next significant resistance level to watch will be the peak from September 12 at 0.8550. A breakout above this level could lead to a target of 0.8600, followed by the August 15 high at 0.8748. Conversely, if sellers push the prices below 0.8500, the pair might target 0.8400 in search of a rebound, which could potentially lift prices back to the 50-DMA.
