• USD/CHF fades bounce off intraday low inside two-day-old bullish chart pattern.
• Firmer RSI, sustained trading beyond 200-SMA keeps buyers hopeful.
• One-month-old horizontal resistance area offers an extra hurdle to the north.

USD/CHF struggles to extend the previous week’s stellar gains, easing towards 0.9250 during early Monday morning in Europe.

In doing so, the Swiss currency (CHF) pair seesaws inside a bullish pennant chart pattern suggesting further upside of the quote until it stays beyond 0.9255 support.

Although a downside break of 0.9255 will negate the bullish chart pattern, the 200-SMA and February’s bottom, respectively around 0.9210 and 0.9150, will challenge USD/CHF bears.

Meanwhile, an upside clearance of 0.9285 will confirm the bullish pennant, theoretically activating an up-move targeting 0.9350.

However, the monthly horizontal area and January 31 swing high, close to 0.9285-90 and 0.9345 in that order, will challenge USD/CHF buyers during the anticipated run-up.

Overall, USD/CHF is likely to extend the previous week’s upside momentum as bulls seek a clear break of 0.9290.

USD/CHF: Four-hour chart

Trend: Further upside expected