USD/CHF Price Analysis: Pullback likely near 0.9310 as bulls seek validation
|- Greenback bulls may attract bids on completion of pullback near falling channel surface.
- The RSI (14) may trace the pullback and find support near 40.00.
- Bulls are firmer above the 61.8% Fibonacci retracement.
The USD/CHF pair has eased slightly after struggling to overstep 0.9380 multiple times. The asset performed subdued on Monday and is expected to continue its weakness after slipping below intraday’s low at 0.9327.
On an hourly scale, USD/CHF displayed a breakout of the falling channel formation whose upper end was placed from March 17 high at 0.9418 while the lower end was marked from March 21 low at 0.9294. Usually, a falling channel breakout pursues a pullback near the channel surface. The asset is following the structure and is advancing towards the upper end of the falling channel to test the breakout.
Earlier, the asset showed a bullish reversal from 61.8% Fibonacci retracement (placed from March 6 low at 0.9165 to March 16 high at 0.9460) at 0.9279.
The Relative Strength Index (14) has shifted into a range of 40.00-60.00 from the bullish range of 60.00-80.00, which signals consolidation ahead. The RSI (14) is likely to trace the pullback and may find a cushion near 40.00 going forward.
Should the asset test the surface of the upper end of the rising channel around 0.9320, some significant bids are expected to drive the pair higher towards Thursday’s high at 0.9345, followed by Tuesday’s high at 0.9376.
On the contrary, a slippage below the round level support at 0.9300 will send the pair towards March 10 high at 0.9284. Breach of the latter will drag the asset towards March 9 low at 0.9250.
USD/CHF hourly chart
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