USD/CHF Price Analysis: Recovery remains elusive below 0.8975
- USD/CHF struggles to extend Friday’s recovery, clings to mild gains during three-day uptrend.
- Steady RSI, clear break of 61.8% Fibonacci retracement suggests further advances.
- Weekly resistance line, 200-SMA guards recovery moves before welcoming bulls.
USD/CHF reverses intraday gains as it fades bounce off an ascending support line from Friday heading into Tuesday’s European session, downbeat around 0.8960 by the press time. In doing so, the Swiss Franc (CHF) pair fails to defend the three-day recovery from the lowest level in five weeks.
The pullback moves, however, lack acceptance from the RSI and MACD oscillators as the former remains steady near the 50.0 level whereas the latter prints bullish signals.
Hence, the USD/CHF is likely to remain firmer past the immediate support line, close to 0.8955 at the latest.
Even if the quote breaks the nearby support line, the 61.8% Fibonacci retracement level of its May 04-31 upside, near 0.8945, will act as an extra filter toward the south.
It’s worth noting, however, that the USD/CHF pair’s weakness past 0.8945 won’t hesitate in refreshing the monthly low, currently around the 0.8900 round figure.
In that case, the previous monthly low of 0.8820, also the lowest level since early 2021, will be in the spotlight.
On the contrary, a one-week-old falling resistance line, around 0.8990 and the 0.9000 psychological magnet guard the immediate recovery of the USD/CHF pair.
Following that, the 200-SMA level of around 0.8975 acts as the final defense of the bears, a break of which will quickly cross the 0.9000 round figure ahead of directing the pair buyers toward the June 12 swing high of near 0.9110.
USD/CHF: Four-hour chart
Trend: Further upside expected