USDCHF is trending higher inside an ascending channel on its 1-hour chart and is about to pull back to support. The Fibonacci tool shows where buyers might be waiting.
Price is currently finding a floor at the 100 SMA dynamic inflection point, which lines up with the mid-channel area of interest. A larger correction could last until the 38.2% Fib at .9900 or the channel support.
The 100 SMA is above the longer-term 200 SMA to indicate that the path of least resistance is to the upside or that the uptrend is more likely to gain traction than to reverse. In that case, price could soon move past the swing high at .9950 and test the channel top closer to parity.
RSI is turning higher to signal that bullish momentum is picking up, and the oscillator has room to climb before indicating overbought conditions. Stochastic is also turning higher to show that buyers have the upper hand and could stay in control.
Dollar traders might be waiting for the speech of Fed head Powell in front of the Senate committee this week to gauge if interest rate cuts are on the table for the rest of the year. While the May NFP disappointment boosted hopes of at least one cut, the June report doused hopes that a more dovish stance is in the works.
Apart from that, the US CPI and PPI reports are up for release as well, and these might serve as guidance for future rate moves. The FOMC minutes are also on the docket and could provide some volatility.
As for the Swiss franc, there are no major catalysts on deck from Switzerland so it might simply react to its counter currency. Other than that, risk aversion combined with dollar weakness might still be a factor for bullish moves.