- USD/CHF retreats from monthly top as buyers struggle after six-day uptrend.
- 61.8% Fibonacci retracement triggered pullback amid overbought RSI, looming bear cross on MACD.
- 200-SMA, two-week-old ascending trend line restricts immediate downside.
USD/CHF keeps the previous day’s pullback from a one-month high as sellers flirt with the 50% Fibonacci retracement of the July-August downside during Wednesday’s Asian session. That said, the Swiss currency (CHF) pair remains pressured at around 0.9640 by the press time.
In doing so, the quote portrays a reversal from the 61.8% Fibonacci retracement, known as the golden ratio, amid the RSI retreat from the overbought territory and an impending bear cross of the MACD.
It’s worth noting, however, that the 200-SMA and an upward sloping support line from August 11, respectively around 0.9615 and 0.9590, challenge the USD/CHF bears.
Should the pair decline below 0.9590, the odds of witnessing a slump towards the 23.6% Fibonacci retracement level surrounding 0.9490 appear brighter. Following that, the monthly low of 0.9370 will be in focus.
Meanwhile, recovery moves remain elusive unless crossing the golden ratio, around 0.9690.
Even so, the July 13 swing low near 0.9750 precedes the previous monthly high surrounding 0.9885 could lure the USD/CHF bulls.
USD/CHF: Four-hour chart
Trend: Further downside expected
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