The USD/CHF pair trimmed a part of its early strong gains and has now retreated over 20-pips from daily tops, albeit has still managed to hold comfortably above the 0.9800 round figure mark.
The mentioned handle is closely followed by a support near the 0.9780-75 region, marking the lower end of an ascending channel, extending from multi-month lows touched on August 13th.
With technical indicators holding in the bearish territory and losing positive momentum on the daily chart, break through the channel support should pave the way for a further corrective slide.
Below the mentioned support, the pair seems all set to extend this week’s retracement slide from one-month tops and aim back towards challenging the 0.9710-0.9700 intermediate support.
The downfall could further get extended towards multi-month lows support – around the 0.9660 region – touched on August 13 – amid the prevailing selling bias around the US Dollar.
On the flip side, immediate resistance is now pegged near the 0.9850-60 region, above which bulls are likely to aim towards reclaiming the 0.9900 handle en-route the channel resistance.
USD/CHF 4-hourly chart
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