USD/CHF technical analysis: Drops to 2-week lows, bears challenge 50% Fibo. level

• The USD/CHF pair extended last week's pullback from over three-week tops and remained under some selling pressure for the fourth session in the previous five.
• The downfall has now dragged the pair to 50% Fibo. level of the 0.9693-0.9948 recent up-move, which if broken might be seen as a key trigger for bearish traders.

Meanwhile, technical indicators on the daily chart have again started gaining negative momentum and support prospects for a further depreciating move, albeit oversold conditions on the 1-hourly chart might help limit the downside.

Hence, it would be prudent to wait for a near-term consolidation or a modest bounce before positioning for an eventual break below the 0.9700-0.9790 region (61.8% Fibo. level) towards the 0.9720 intermediate horizontal support.

A follow-through selling might turn the pair vulnerable to head back towards challenging sub-0.9700 level, or yearly lows set on June 25 en-route the next major support near the 0.9650-40 region.

On the flip side, the 38.2% Fibo. level – around mid-0.9800s, now becomes immediate resistance, which if cleared decisively might negate the near-term bearish outlook assist the pair to aim back towards reclaiming the 0.9900 handle.

USD/CHF 1-hourly chart