Growth within limit consolidation

• USD/CHF is rising in a range-bound market.
• It has met resistance at a group of MAs but is likely to continue higher.

USD/CHF is rising in its sideways range. It has touched a group of major moving averages that offer firm resistance.

USD/CHF 4 hour chart

The trend is neither up nor down, but rather sideways, and thus the oscillating nature of the market is likely to widen, given the principle that “the trend is your friend”.

The blue MACD (Moving Average Convergence Divergence) momentum indicator line recently crossed above the red signal line, providing a buy signal. MACD is a more reliable indicator in sideways markets.

USD/CHF is likely to continue higher. A break above the 0.8480 high would lead to an extension to a target around 0.8517 (September 23 and 26 highs), followed by the range ceiling at 0.8539.