- USD/CHF stages a modest intraday bounce from a near two-month-old trading range support.
- Subsequent recovery might be seen as a selling opportunity and remain capped near 100-DMA.
- The pair remains vulnerable to eventually confirm a bearish breakdown through 0.9600 level.
The USD/CHF pair found some support ahead of the 0.9600 round-figure mark and has now managed to rebound around 20-25 pips from the vicinity of monthly lows. The mentioned level marks the lower end of a two-month-old trading range and should act as a key pivotal point for the pair’s next leg of a directional move.
Given the pair’s repeated failures near the very important 200-day SMA, the near-term bias seems tilted in favour of bearish traders. This coupled with the fact that technical indicators on the daily chart have just started drifting into the negative territory further support prospects for an eventual bearish breakdown.
However, some repositioning trade ahead of the US President Donald Trump’s news conference on China held investors from placing any aggressive bearish bets. Any subsequent bounce towards mid-0.9600s might still be seen as a selling opportunity and seems more likely to remain capped near 100-day SMA, around the 0.9675-80 region.
On the flip side, a convincing breakthrough trading range support now seems to turn the pair vulnerable to accelerate the slide further towards late March swing lows support near the key 0.9500 psychological mark.
USD/CHF daily chart
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Technical levels to watch
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