Ella 
USD/CHF bulls struggle to maintain upper hand at two-month highs.
The RSI line is overbought and the uptrend line from three weeks ago will challenge the bulls.
Bears need confirmation from the 0.8780 support confluence and former resistance line to regain control.
USD/CHF edged up to its highest level in two months, lacking momentum heading into Thursday’s European session around 0.8920.
The pair’s bulls are struggling at a rising resistance line from 3 weeks ago, while the RSI is overbought. However, the successful breakthrough of the previous resistance line since the end of May and the 200 SMA has made the bulls hopeful.
In this regard, the currency pair is expected to fall towards 0.8900 and the 50% retracement of the May-July decline around 0.8850.
The 200 SMA and 38.2% retracement at 0.8780 appear to be strong hurdles for USD/CHF after breaking the 0.8850 support. If it breaks through this level, pay attention to the resistance-turned-support level of 0.8720 a few days ago, which is the last line of defense for the bulls.
On the other hand, a clear break below the aforementioned resistance line at 0.8930 would require confirmation from the recent peak at 0.8945 and the Swiss unemployment rate in August to convince USD/CHF bulls.
After that, the pair will move towards the psychological level of 0.9000, and even then, the late June swing high of 0.9020 may act as additional support.
