USDCHF recently broke past the resistance at the 0.8000 major psychological mark, confirming that a rally of significant height could be underway.

Price surged to highs around 0.8107 before showing signs of exhaustion, suggesting that a pullback could take place to gather more bullish energy. The Fibonacci retracement tool shows where more buyers could be waiting to join in.

The 38.2% Fib is at 0.80358, which lines up with a near-term area of interest. The 50% level is at 0.80135, still close to the broken resistance that might now hold as support.

A larger correction could reach the 61.8% Fib at 0.79913, which coincides with the shallow ascending trend line that has been holding since late October and the 100 SMA dynamic inflection point. This zone could be the line in the sand for a bullish pullback scenario.

If any of the Fibs are able to keep losses in check, USDCHF could resume its climb to the recent swing high or establish fresh highs beyond 0.8100. On the other hand, a break below the 61.8% Fib and ascending trend line support could signal that a deeper pullback to the lows around 0.7920 is underway.

On the subject of moving averages, the 100 SMA recently crossed above the 200 SMA to confirm that the path of least resistance is to the upside or that the climb is more likely to gain traction from here. The gap between the indicators is widening to reflect strengthening bullish momentum.

However, stochastic is heading south from the overbought zone to reflect a return in selling pressure. The oscillator has plenty of room to slide before reaching the oversold area, which means that the correction could keep going until that happens.

RSI is also turning lower from elevated levels, so price could keep following suit while profit-taking is in play. The indicator has some ground to cover on its move south, potentially allowing USDCHF to test the deeper Fibonacci levels.