USD/CHF Price Analysis: Bears attack 0.9640 key support to aim for further ruling
|- USD/CHF takes offers to refresh intraday low as sellers poke 11-week-old support line.
- RSI retreat, bear cross on MACD hint at further downside.
- Two-month-old horizontal support in focus, bulls need validation from 50-DMA.
USD/CHF extends pullback from the 50-DMA to renew intraday low amid early Monday morning in Europe. That said, the Swiss currency (CHF) pair hinges on the short-term key supports as the bears keep reins around 0.9645 by the press time.
In addition to the pullback from the 50-DMA, a downward sloping RSI line and a looming bearish signal on the MACD also keep sellers hopeful.
However, a daily closing below the 0.9640 level becomes necessary before the quote drops to a horizontal area comprising multiple lows marked since late April, around 0.9540.
In a case where USD/CHF prices drop below 0.9540, the 0.9500 threshold and the 100-DMA level near 0.9490 will be an important challenge for the pair sellers.
Meanwhile, an upside clearance of the 50-DMA hurdle surrounding 0.9705 could aim for 0.9760 and the 0.9800 resistance levels before challenging a five-week-old horizontal resistance zone near 0.9865-70.
Should the USD/CHF bulls manage to cross the 0.9870 hurdle, the odds of their run-up towards the yearly top near 1.0065 can’t be ruled out.
USD/CHF: Daily chart
Trend: Further weakness expected
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