USD/CHF Price Analysis: Extends pullback from four-month-old hurdle towards 0.9900
- USD/CHF takes offers to refresh intraday low, snaps four-day uptrend near three-month high.
- Overbought RSI, short-term resistance line direct sellers towards previous resistance line from July.
- Bulls have a bumpy road to refresh the yearly high.
USD/CHF renews intraday low around 0.9910 as it prints the first daily loss in five during Tuesday’s Asian session.
In doing so, the Swiss currency (CHF) pair reverses from a downward sloping resistance line from May. Also adding strength to the corrective move could be the overbought RSI conditions.
With this, the quote is on the way to the resistance-turned-support line from July, around 0.9850. However, July’s peak of 0.9885 may probe the intraday sellers of the USD/CHF pair.
It should be noted, however, that the 61.8% Fibonacci retracement of the pair’s May-August downturn, near the 0.9800 threshold, could also test the bears before directing them toward the 100-DMA support level near 0.9685.
Alternatively, recovery moves need to cross the aforementioned resistance line, at 0.9950 by the press time, to recall the USD/CHF buyers.
Following that, the 1.0000 psychological magnet and multiple hurdles around 1.0050 can test the bulls before highlighting the yearly peak of 1.0065.
Overall, USD/CHF is likely to witness further downside but the bears are far from taking control.
USD/CHF: Daily chart
Trend: Limited weakness expected