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  • USD/CHF recovers a major part of the overnight slide to three-week lows.
  • The near-term technical set-up still seems tilted in favour of bearish traders.
  • The ongoing recovery runs the risk of fizzling out quickly near 0.9700 mark.

The USD/CHF pair built on its steady intraday positive move and the uptick picked up paced during the early North American session. The pair refreshed daily tops the last hour and recovered a major part of the previous day’s sharp fall to three-week lows.

The pair was last seen trading near the top end of its daily trading range, around the 0.9685-90 region, challenging 50-day SMA. Given the overnight sustained break below the mentioned support, the near-term bias still seems tilted in favour of bearish traders.

This comes on the back of the recent repeated failures near the very important 200-day SMA. Moreover, technical indicators on the daily chart are still holding in the bearish territory and adds credence to the near-term negative outlook.

Hence, any subsequent recovery towards the 0.9700 round-figure mark might still be a selling opportunity and keep a lid on any subsequent positive move for the major.

On the flip side, the 0.9655-50 region now seems to protect the immediate downside, which if broken will reinforce the bearish bias. The pair might then accelerate the fall to test sub-0.9600 level or the lower end of a 1-1/2-month-old trading range.

USD/CHF daily chart


Technical levels to watch