USD/CHF Price Analysis: Bears attack immediate triangle support
|- USD/CHF prints five-day losing streak while declining 0.20% intraday.
- RSI conditions suggest another bounce off the nearby support line.
- 38.2% Fibonacci retracement, 200-HMA add upside barriers.
Despite bouncing off an intraday low of 0.9061, USD/CHF stays on the back foot while trading near 0.9065 ahead of Tuesday’s European session. Sustained trading below 200-HMA and 38.2% Fibonacci retracement of August 31 to September 08 upward move, currently at the 0.9120 area, keeps the sellers hopeful. Though, the support line of a short-term symmetrical triangle, at 0.9060 now, questions the USD/CHF pair additional weakness.
Not only the triangle formation but nearly oversold RSI conditions also question the pair’s nearby moves around 0.9060 support.
As a result, the USD/CHF’s bounce off 61.8% Fibonacci retracement level of 0.9075 can be anticipated ahead of the recovery moves to challenge the triangle’s resistance, currently around 0.9090.
It should, however, be noted that any further upside past-0.9090 will be capped by the 0.9120/25 resistance confluence mentioned above.
Alternatively, the pair’s downside break of 0.9060 will aim for 0.9048 and the monthly low of 0.8999 during the additional weakness.
USD/CHF hourly chart
Trend: Sideways
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