USD/CHF Price Analysis: Drills 0.8570 support within multi-month-old bearish channel
- USD/CHF remains on the back foot at the lowest levels since January 2015.
- Oversold RSI prods Swiss Franc pair sellers within seven-month-old falling trend channel.
- 100-DMA holds the key to USD/CHF bull’s entry; sellers can aim for 2015 bottom past 0.8570.
USD/CHF bears keep the reins at the lowest levels since January 2015, down 0.12% intraday near 0.8575 heading into Friday’s European session.
In doing so, the Swiss Franc pair drops for the seventh consecutive day while refreshing the multi-year low. However, the oversold RSI conditions join the bottom line of a downward-sloping trend channel established in December 2022, around 0.8570, to challenge the USD/CHF bears.
In a case where the pair sellers ignore the oversold RSI conditions and defy the bearish chart pattern by breaking the 0.8570 support, the late January 2015 swing low of around 0.8500 may act as the last defense before directing the quote to the year 2015 bottom of 0.8300.
Meanwhile, USD/CHF recovery may aim for the 0.8600 and 0.8700 round figure but the bulls remain off the table unless witnessing a daily closing beyond May’s low of 0.8820.
Even so, the aforementioned multi-month-old bearish channel’s top line, close to 0.8990 at the latest, prods the pair buyers before giving them control.
It should be observed that the 0.9000 psychological magnet and the 100-DMA are extra filters toward the north.
Overall, USD/CHF remains bearish but the sellers appear running out of steam of late, which in turn suggests a corrective bounce in prices.
USD/CHF: Daily chart
Trend: Limited downside expected
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.
