- USD/CHF treads water after reversing from the key SMA while snapping two-day winning streak the previous day.
- Normal RSI conditions lower barriers to further downside.
- The 0.9200 threshold and the previous month’s high can lure buyers during the fresh upside.
USD/CHF stays depressed near 0.9095 during the pre-European session on Friday. The Swiss major stepped back from the highest in two weeks while repeating three-month-old failures to cross the 200-bar SMA.
With the normal RSI conditions cutting odds of any trend change, the quote is likely to remain pressured towards the August 21 low near 0.9061. though, multiple tops marked during the August-end may question the pair’s further declines near 0.9050.
If the bears refrain from stepping back from 0.9050, the 0.9000 psychological magnet will be on their radars.
Alternatively, an upside break of the 200-bar SMA level, at 0.9125 now, will trigger the fresh run-up towards the 0.9200 mark comprising the August 12 high.
However, the pair’s extra rise past-0.9200 will find difficulty in sustaining as the 50% Fibonacci retracement level of July-September downside and the August high can question the bulls at 0.9233 and 0.9242 respectively.
USD/CHF four-hour chart
Trend: Bearish
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