- Finds some support near 50% Fibo. level, albeit lacked strong follow-through.
- The near-term set-up points to further decline towards testing the 0.9800 mark.
The USD/CHF pair struggled to register any meaningful recovery and remained well within the striking distance of over one-month lows, around the 0.9850-40 area.
The mentioned region coincides with the 50% Fibonacci level of the 0.9659-1.0028 recent move up and should now act as a key pivotal point for the pair’s near-term trajectory.
Given the pair’s repeated failures near the parity mark and a subsequent break below a two-month-old ascending trend-line, the set-up seems tilted in favour of bearish traders.
Meanwhile, technical indicators on the daily chart have been gaining bearish momentum and are still far from being in the oversold territory, reinforcing the negative outlook.
Hence, a follow-through slide, possibly towards testing 61.8% Fibo. level support near the 0.9800 handle, now looks a distinct possibility amid persistent USD selling bias.
The 0.9890-95 region (38.2% Fibo. level) now seems to act as an immediate resistance, above which the pair could climb back towards the 0.9940-45 confluence support breakpoint.
USD/CHF daily chart
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