USD/CHF Price Analysis: Bears approach monthly support line around 0.9600
- USD/CHF remains pressured around intraday low, fades bounce off three-week low marked the previous day.
- RSI retreat, sustained trading below 200-SMA keeps sellers hopeful.
- Bulls need validation from six-week-old resistance line to retake control.
USD/CHF retreats to 0.9635 as it refreshes its intraday low during Tuesday’s Asian session, reversing the previous day’s rebound from a three-week low.
Given the quote’s sustained trading below the 200-SMA, as well as downbeat RSI (14), USD/CHF bears are likely to keep reins.
However, an upward sloping support line from late June, around 0.9610 by the press time, could restrict the quote’s immediate downside.
Following that, the lower line of the two-week-long falling wedge bullish chart pattern, close to 0.9580, will be in focus.
Should the quote USD/CHF prices fail to rebound from 0.9580, the odds of witnessing further downside towards June’s low of 0.9495 can’t be ruled out.
Alternatively, an upside break of the stated wedge’s resistance line, near 0.9660 at the latest, can trigger the pair’s short-term rebound towards the 200-SMA level surrounding 0.9715.
It’s worth noting, however, that the pair’s upside past 0.9715 hinges on the USD/CHF pair’s ability to cross the downward sloping resistance line from mid-June, near 0.9825 by the press time.
Overall, USD/CHF remains pressured towards a short-term key support line inside a bullish chart formation.
USD/CHF: Four-hour chart
Trend: Further weakness expected