USD/CHF technical analysis: Bulls await a decisive break through 3-day old trading range

• The USD/CHF pair failed to capitalize on a strong up-move witnessed at the start of the current week and ticked lower for the third consecutive session on Thursday.
• The up-move faltered ahead of the 61.8% Fibo. level of the 1.0016-0.9693 recent bearish slide, though the downside remained limited amid fading safe-haven demand.

The pair remained well within a three-day-old trading range and has been oscillating around 50% Fibo. level to form a bullish continuation rectangle chart pattern on the 1-hourly chart, pointing to a brief pause in the trend.

This coupled with the fact that the pair has managed to hold its neck above important intraday moving averages – 100 & 200-period SMA, further add credence to the near-term bullish outlook ahead of Friday’s US NFP report.

However, mixed technical indicators on 1-hourly charts haven't been supportive of any firm intraday direction while oscillators on the daily chart remained in the negative territory, warranting caution for aggressive traders.

The set-up clearly suggests indecision over the pair’s near-term trajectory and hence, it would be prudent to wait for a convincing breakthrough the mentioned range before traders start placing fresh directional bets.

USD/CHF 1-hourly chart