USD/CHF bulls taking a breather after breaking a falling channel

USD/CHF was trading in a falling channel on the daily chart before buyers made a nice breakout on Monday. Remaining above the broken resistance of 0.98681 keeps bulls hopeful for keeping the rally going. If buying forces persist, the price can tackle the 0.99741 hurdle to overpass Monday’s high. Further traction can be resulted from a sustained break above this barrier, which can put 1.01080 into the spotlight.

Otherwise, if sellers find enough momentum to revenge the rally, they may push the price all way down towards 0.98681, which is in the vicinity of the broken channel’s line. The further decline will send the price to meet the 50-day exponential moving average.

Short-term momentum oscillators imply bullish bias. However, RSI is hovering around the 70-level, hinting at an overbought condition, which might be followed by buyers taking a breather. Momentum is up above the 100-threshold, suggesting persistent bullish sentiment. Likewise, MACD bars are getting teller in the positive area, above the signal line, indicating that buying pressure is driving the market higher.