USD/CHF is under pressure near the intraday low and extends the drop from the 50% Fibonacci retracement.
In the midst of a gloomy Momentum, a three-month-old horizontal support puts sellers to the test.
The 200-day EMA protects the short-term upside, while the monthly high adds to the northside filters.
As European traders await Thursday’s bell, USD/CHF takes offers around 0.9138 and refreshes intraday lows with 0.07 percent losses on the day.
The major currency pair reversed course from the previous day’s 50 percent Fibonacci retracement level of the April-June fall. However, the bears have recently been challenged by a horizontal range containing various levels marked since mid-April and a 38.2 percent Fibonacci retracement.
USD/CHF is likely to continue bearish given the downbeat Momentum line, but a daily close below 0.9130 will reinforce the downside momentum.
Following that, the bears may be pleased by the May 12 peak near 0.9090 and the 23.6 percent Fibonacci retracement level near 0.9055 ahead of the yearly bottom around 0.8926.
On the other hand, a daily close above the 200-day EMA, at 0.9145, is required for purchasers of the pair to return to the 50% Fibonacci retracement level near 0.9200.
The USD/CHF bulls, on the other hand, will not be convinced until the price remains below the 61.8 percent Fibonacci retracement level of 0.9264.
More weakness is likely in the future./n
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