USD/CHF holds lower ground after posting the heaviest losses in a week.
Descending Momentum line, pullback from 61.8% Fibonacci retracement favor bears.
USD/CHF remains pressured around 0.9175, choppy of late, ahead of Thursday’s European session.
The major currency pair took a U-turn from a two-week top the previous day to provide a close below 50% Fibonacci retracement (Fibo.) of April-June downside.
In addition to the breakdown of the key Fibonacci retracement, not to forget the inability to cross the 61.8% Fibonacci retracement during early July, the downward sloping Momentum line also weighs on the quote.
However, 100-DMA challenges the short-term USD/CHF declines around 0.9160, a break of which could direct the bears toward a 38.2% Fibonacci retracement level of 0.9135 before highlighting the monthly low of 0.9117 for the sellers.
Meanwhile, recovery moves will have to cross the immediate Fibo. hurdle and the latest swing high, respectively around 0.9200 and 0.9230, before recalling the USD/CHF bulls.
Even so, a daily closing beyond the monthly high of 0.9274 will be required for the pair to aim for the yearly peak.
Trend: Pullback expected