USD/CHF fades bounce off one-week low inside a bearish chart pattern. Downbeat oscillators add strength to the bearish bias but 0.9850 appears the key support. Buyers need validation from 1.0030 to retake control. USD/CHF remains pressured after the intraday low, extending the previous day’s pullback from a four-month high to 0.9950 heading into Wednesday’s European session. In doing so, the Swiss currency (CHF) pair stays inside a five-week-old rising wedge bearish chart pattern.
In addition to the quote’s latest weakness and the bearish formation around the multi-day top, the bearish MACD signals and the downbeat RSI (14), not oversold, also favor USD/CHF bears of late.
That said, one-week-old horizontal support near 0.9915 lures the intraday sellers ahead of highlighting the stated wedge’s support line, close to 0.9850 by the press time. Should the quote remains bearish past 0.9850, a slump to the monthly low of around 0.9780 appears imminent during the theoretical south-run targeting the 0.9310 level.
On the flip side, the upper line of the stated wedge, around 1.0030, restricts short-term USD/CHF upside before directing buyers towards the tops marked in June and May, near 1.0050 and 1.0065 in that order. If USD/CHF bulls keep the reins past 1.0065, the odds favoring a gradual run-up towards the year 2019 peak surrounding 1.0240 can’t be ruled out.
