USD/CHF Price Analysis: A pullback likely near 0.9320 on a falling channel breakout

• Bulls are firmer as the RSI (14) has shifted into a bullish range of 60.00-80.00.
• Breakout of the falling channel formation is likely to follow by a minor pullback near the surface.
• The greenback bulls need validation of a bull cross from 50 and 200-period EMAs.

The USD/CHF pair has witnessed a positive open drive session on Monday as the asset continues marching to the upside right from the first tick in the early Asian session. Earlier, the major displayed a strong upside move after furnishing a low of 0.9261 on Friday.

On an hourly scale, USD/CHF has given a breakout of the falling channel formation on the upside. Usually, a breakout of a falling channel formation displays heavy volumes and large ticks after a pullback near the surface of the channel. The upper end of the channel is placed from March 17 high 0.9418 while the lower end is marked from March 21 low at 0.9294.

The Relative Strength Index (RSI) (14) has shifted into a bullish range of 60.00-80.00 from 40.00-60.00, which signals a fresh impulsive way going forward.

However, the asset seeks validation of a bullish cross from 50 and 200-period Exponential Moving Averages (EMAs), which are trading at 0.9308 and 0.9323 respectively.

Should the asset test the surface of the upper end of the rising channel around 0.9320, some significant bids are expected to drive the pair higher towards Thursday’s high at 0.9345, followed by Tuesday’s high at 0.9376.

On the contrary, a slippage below 50-period EMA at 0.9308 will send the pair towards March 10 high at 0.9284. Breach of the latter will drag the asset towards March 9 low at 0.9250.

USD/CHF hourly chart