- Oversold levels of 14-bar relative strength index (RSI) highlight the importance of near-term support-line.
- 100 and 200-HMAs seem crucial upside resistances.
Although failures to cross 100 and 200 HMAs drag the USD/CHF pair to the lowest in two months, oversold RSI may play its role to respect near-term support-line as the quote ticks near 0.9990 during early Monday.
In doing so, a downward slanting trend-line since April 19 can offer immediate support to the pair near 0.9980, a break of which can recall early April month lows near 0.9955 and 0.9930 back to the chart.
Given the pair’s extended south-run beneath 0.9930, late-March bottom around 0.9910 and 0.9900 round-figure could lure sellers.
Alternatively, 61.8% Fibonacci retracement of March – April upside, at 1.0025 acts as immediate resistance ahead of fueling the quote to 50% Fibonacci retracement of 1.0065.
However, 100-hour moving average (HMA) at 1.0075 and 1.0130 figure comprising 200-HMA might question buyers past-1.0065.
USD/CHF 4-Hour chart
Trend: Pullback expected
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