USD/CHF Price Analysis: Approaching the top of a triangle formation

• The USD/CHF is nearing the top of a triangle formation at 0.9760.
• Next resistance levels would be 0.9790/0.9800 before March high at 0.9900.
• On the downside, support levels are 0.9650, 0.9590 and 0.9500.

The US dollar has been trading sideways during the last sessions, trapped within a 50-pips range, supported above 0.9700 yet unable to extend past 0.9750. The daily chart shows the pair narrowing its trading range during the last six weeks, shaping a symmetrical triangle, whose trendline resistance line lies right above today’s high, at 0.9760.

With the pair sitting comfortably above the 20 and 100-day SMA, a successful move beyond the trendline might attract buyers to launch an attack to the 200-day SMA, now around 0.9790 area, which has been limiting upside attempts in previous occasions. If the pair manages to break above 0.9790/0.9800 (April highs), the next target would be March 23 high at 0.9900.

On the downside, a pullback below the 100-days SMA, at 0.9685 might attract bears, pushing the pair against trendline support, now at 0.9650. Below here, the pair migt seek support at the 0.9590/0.9600 (April 14, 15 and May 1 lows) before aiming towards 0.9500 (April 27, 30 lows).

USD/CHF daily chart

USD/CHF key levels to watch