“¢ The USD/CHF pair remained heavily offered for the second consecutive session on Monday and dropped to three-month lows during the early European session.
“¢ Bulls, however, showed some resilience below 38.2% Fibo. level of the 0.9542-1.0238 and managed to find decent support near the very important 200-day SMA.
Given last week’s rejection slide from a confluence region – comprising of 50% Fibo. level and 50-day SMA, and a subsequent break below a short-term ascending trend-line, the intraday recovery might still be seen as a selling opportunity.
Meanwhile, technical indicators on hourly/daily charts maintained their bearish bias and are still far from being in the oversold territory, adding credence to the near-term negative outlook and supporting prospects for an eventual breakdown.
Hence, a convincing break through the mentioned support will now be seen as a key trigger for bearish traders and set the stage for a further near-term depreciating move towards the 0.9900-0.9890 region – marking 50% Fibo. level.
USD/CHF daily chart
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