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  • USD/CHF maintained its heavily offered tone for the third straight session on Wednesday.
  • The downfall added credence to the recent break below a two-month-old trading range.
  • Oversold conditions on hourly charts held bears from placing fresh bets ahead of FOMC.
  • The pair seems vulnerable to slide further towards testing the 0.9400 round-figure mark.

The USD/CHF pair added to this week’s heavy losses and remained under some intense selling pressure for the third straight session on Wednesday.

The overnight slide below the key 0.9500 psychological mark added credence to the recent bearish break through a two-month-old trading range. This, in turn, might have already set the stage for a further near-term depreciating move.

The pair dived to the lowest level since mid-March, around the 0.9455 region, following the release of softer-than-expected US CPI figures. However, extremely oversold conditions on hourly charts warrant some caution for bearish traders.

That said, any attempted recovery move might still be seen as a selling opportunity and seems more likely to remain capped near the 0.9500 level. The ongoing downward trajectory seems all set to aim towards testing the 0.9400 mark.

Some follow-through selling has the potential to drag the pair further towards the 0.9320 intermediate support. The might eventually break below the 0.9300 mark and slide further towards 2020 daily closing lows, around mid-0.9200s.

USD/CHF daily chart

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Technical levels to watch

 

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