USDCHF sped up to close above the 50% Fibonacci of the latest downfall at 0.9200 and on top of the Ichimoku cloud on Wednesday.
The 61.8% Fibonacci of 0.9297 is the next target as the positive slope in the RSI and the Stochastics and the strengthening momentum in the MACD foresee additional bullish extensions in the near term. That said, the RSI and the Stochastics are currently hovering near overbought levels, suggesting that room for improvement could be limited.
Perhaps, a break above 0.9297 may immediately lose steam near the 78.6% Fibonacci of 0.9354. Otherwise, a continuation higher may last until the crucial nine-month high of 0.9471, where any violation would re-activate the 2021 uptrend, pushing resistance into the 0.9530 – 0.9596 restrictive zone.
Should sellers take the wheel, the surface of the cloud and the 50% Fibonacci at 0.9200 could shift their role to support the price ahead of the 38.2% Fibonacci of 0.9133. Lower, the 23.6% Fibonacci of 0.9053 may attempt to catch steeper declines along with the 50- and 200-day simple moving averages (SMAs), which hover around the same location. Should the bears claim that territory too, the door will open for the key 0.8977 – 0.8929 zone.
In brief, USDCHF is expected to trade bullish in the near term, but some caution is required as the pair is currently flirting with overbought levels.