USD/CHF Price Analysis: Drops below 0.9450, further weakness expected
|- USD/CHF slips past-61.8% Fibonacci retracement of the early-Monday rise.
- A short-term falling trend channel keeps the sellers hopeful.
- Buyers aim for 0.9485 on defying the bullish formation.
USD/CHF remains on the back foot around 0.9440, down 0.10 on a day, during the pre-European session on Wednesday. In doing so, the quote declines below 61.8% Fibonacci retracement of June 11-12 upside while also staying inside a two-day-old descending channel formation.
Considering the pair’s break of the key Fibonacci retracement, as well as channel pattern, the bears seem firming up their grips to refresh the weekly low under 0.9420.
However, downward sloping RSI and support line of the said channel might restrict the pair’s further declines around 0.9400.
Meanwhile, buyers are less likely to enter unless the quote defies the channel by surging past-0.9455. Following that, last Wednesday's low near 0.9485 might be their immediate favorite.
During the quote’s further upside beyond 0.9485, 0.9500 and Friday top near 0.9530 could lure the optimists.
USD/CHF hourly chart
Trend: Bearish
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