More upside dependent on break above 100-day SMA

• USD/CHF is charting a sideways course just beneath its September high and the 100-day SMA. 
• The pair is in a short-term uptrend, favoring a extension higher subject to a clear break above the SMA. 

USD/CHF flatlines in the 0.8660s after pausing in its run up from the late September lows. The pair is close to the (blue) 100-day Simple Moving Average (SMA), currently situated at 0.8691. 

USD/CHF Daily Chart 

The short and medium-term trends are bullish and given the principle that “the trend is your friend” the odds favor an extension higher. 

That said, USD/CHF has now reached the target generated by the breakout from the late August and September range at 0.8680. This suggests bullish pressure might wane. 

A break above the 100-day SMA and the 0.8700 level would confirm a further extension to the 0.8750 resistance level (August 15 high). 

The Relative Strength Index (RSI) momentum indicator is still not in overbought suggesting the pair has room for more upside.