USD/CHF Price Analysis: Bounces off multi-year low towards 0.8630 hurdle amid oversold RSI

USD/CHF reverses from the lowest level since January 2015.
Oversold RSI triggers corrective bounce off multi-day low but convergence of key resistance lines prod Swiss Franc pair buyers.
May’s low, 21-DMA act as additional upside filters to watch past 0.8630.
Multiple swings around 0.8580 may prod bears ahead of highlighting 2015 bottom.

Anil Panchal FXStreet

USD/CHF consolidates weekly/monthly losses around 0.8580-85 heading into Wednesday’s European session, printing the first daily gain in three.

In doing so, the Swiss Franc (CHF) pair bounces off the lowest level since January 2015 amid an oversold RSI (14) line.

The major currency pair’s recovery, however, appears doubtful amid the bearish MACD signals and the presence of the 0.8630 resistance confluence comprising the previous support line from early February and a fortnight-old descending trend line.

Even if the USD/CHF bulls manage to cross the 0.8630 hurdle May’s bottom of around 0.8820 will be a tough nut to crack for them before retaking control.

That said, 0.8600, 0.8700 and 0.8800 round figures may offer additional challenges to the pair buyers while the 21-DMA level of around 0.8845 acts as the final defense of the bears.

On the contrary, multiple levels around the 0.8580 level marked in January 2015 prod the USD/CHF bears before directing them to the year 2015 bottom of 0.8300.

Overall, the USD/CHF pair’s latest corrective bounce can be considered as bears taking a breather at the multi-day low.

USD/CHF: Daily chart

Trend: Limited recovery expected

Additional important levels

Overview
Today last price	0.8598
Today Daily Change	0.0023
Today Daily Change %	0.27%
Today daily open	0.8575

Trends
Daily SMA20	0.8857
Daily SMA50	0.8953
Daily SMA100	0.9025
Daily SMA200	0.9239

Levels
Previous Daily High	0.8608
Previous Daily Low	0.8555
Previous Weekly High	0.8918
Previous Weekly Low	0.8566
Previous Monthly High	0.912
Previous Monthly Low	0.8902
Daily Fibonacci 38.2%	0.8575
Daily Fibonacci 61.8%	0.8588
Daily Pivot Point S1	0.8551
Daily Pivot Point S2	0.8527
Daily Pivot Point S3	0.8499
Daily Pivot Point R1	0.8604
Daily Pivot Point R2	0.8632
Daily Pivot Point R3	0.8656

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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