USD/CHF Price Analysis: Pullback moves eye previous resistance around 0.9385
- USD/CHF renews intraday low while extending pullback from 11-month high.
- Overbought RSI triggered consolidation but bulls remain hopeful above previous resistance line.
- Convergence of 200-DMA, 50% Fibonacci retracement appears tough nut to crack for bears.
USD/CHF takes offers to refresh intraday low around 0.9395, down 0.18% on a day heading into Wednesday’s European session.
In doing so, the Swiss currency (CHF) pair snaps a four-day winning streak that poked April 2021 levels the previous day.
However, the overbought RSI conditions triggered the quote’s pullback move towards the resistance-turned-support line from September 2021, near 0.9385 at the latest.
It’s worth noting that the USD/CHF weakness past 0.9385 will direct it to January’s high 0.9343 and then to the 61.8% Fibonacci retracement (Fibo.) of April-June 2021 fall, close to 0.9264.
Should the pair bears keep reins past 0.9264, a confluence of the 200-DMA and 50% Fibo. around the 0.9200 threshold will be a tough nut to crack for them.
Meanwhile, recovery moves need to cross the previous day’s high of 0.9431 to justify the bullish MACD signals, which in turn could propel USD/CHF prices towards the year 2021 peak of 0.9472.
Following that, the 0.9500 threshold and multiple tops marked during mid-June 2020 around 0.9530-35 will be in focus.
To sum up, USD/CHF remains on the bull’s radar despite the latest pullback moves.
USD/CHF: Daily chart
Trend: Pullback expected