USD/CHF Price Analysis: Clings to gains near multi-month tops, around 61.8% Fibo.

• USD/CHF gained strong positive traction for the second straight session on Wednesday.
• Bullish oscillators on the daily chart support prospects for a further appreciating move.
• A move towards 200-DMA, around the 0.9145 region, now looks a distinct possibility.

The USD/CHF pair added to the previous day's strong move up and gained some follow-through traction for the second consecutive session on Wednesday. The momentum pushed the pair to the highest level since early December 2020, around the 0.9085 area.

The mentioned region marks the 61.8% Fibonacci level of the 0.9297-0.8758 downfall, which if cleared will set the stage for additional gains. The USD/CHF pair might then surpass the 0.9100 mark and aim to challenge 200-day SMA, around the 0.9145 region.

Meanwhile, technical indicators on the daily chart are holding in the positive territory and still far from being in the overbought zone. However, RSI on the 4-hourly chart is already flashing overbought conditions and warrants some caution for bulls.

This seemed to be the only factor holding bulls from placing fresh bets. Hence, it will be prudent to wait for some follow-through buying beyond the 61.8% Fibo. level before traders start positioning for any further near-term appreciating move.

On the flip side, the 50% Fibo. level, around the 0.9030 region, now seems to protect the immediate downside. This is followed by supports near the key 0.9000 round-figure mark and 100-day SMA support, currently around the 0.8985-80 region.

The latter nears 38.2% Fibo. level and a subsequent slide will negate the constructive outlook. This, in turn, will set the stage for a slide towards the 0.8915 horizontal support en-route 23.6% Fibo. level, around the 0.8885-80 region.

USD/CHF daily chart

Technical levels to watch