USD/CHF Price Analysis: Crosses 78.6% Fibo to renew 29-month high around 0.9950

• USD/CHF rises to the highest levels since December 2019, up three consecutive days.
• Overbought RSI conditions can test bulls ahead of 1.0015-30 area.
• Bears remain cautious until witnessing a clear break of 200-week SMA.

Alike other major currency pair, USD/CHF also portrays the US dollar’s stellar run-up during Monday’s initial European session. In doing so, the Swiss currency (CHF) pair rises for the third consecutive day to print the highest level in more than two years.

The upside momentum breaks the 78.6% Fibonacci retracement (Fibo.) of April 2019 to January 2021 fall. However, overbought RSI conditions challenge the quote’s further upside.

Should the USD/CHF prices remain firmer beyond the 0.9920 key Fibo level, multiple tops marked between June and November of 2019, around 1.0015-30, will be a tough nut to crack for the pair buyers.

Alternatively, a daily closing below 0.9920 will need validation from the 0.9900 round figure ahead of directing bears towards the May 2020 peak surrounding 0.9800.

In a case where USD/CHF remains bearish past 0.9800, the 61.8% Fibonacci retracement and the 200-week SMA, respectively around 0.9675 and 0.9525, will be crucial for the bears to track.

Overall, USD/CHF bulls are likely to face headwinds but the overall trend remains positive.

USD/CHF: Weekly chart

Trend: Pullback expected