February 8, 2023

Corrective pullback remains elusive below 0.9150

  • USD/CHF refreshes intraday high, snaps five-day downtrend to bounce off two-month low.
  • Previous support lines from August, January 2021 restrict recovery moves.
  • 50% Fibonacci retracement, November’s low on bear’s radar.
  • Descending RSI line, the key support breaks keep sellers hopeful.

USD/CHF rebounds from a two-month low to defend the 0.9100 threshold, around 0.9130 during Monday’s Asian session. In doing so, the Swiss currency (CHF) pair rises for the first time in the last six days to offer a positive start to 2022.

The corrective pullback takes place from the 50% Fibonacci retracement (Fibo.) of the January-April 2021 upside. However, the key support-turned-resistance lines challenge USD/CHF buyers. Also adding to the bearish bias is the downward sloping RSI line, not oversold.

That said, the USD/CHF recovery may initially aim for a four-month-old resistance line, near 0.9135, a break of which will direct buyers towards another previous support line, close to 0.9150.

While a clear upside break of 0.9150 enables the pair to aim for the 0.9200 round figure, a descending resistance line from November 24, around 0.9235, will challenge the quote’s further advances.

On the flip side, the 50% Fibo. level of 0.9116 and 0.9100 are likely immediate supports to watch during the quote’s fresh downside.

Following that, November’s low of 0.9088 and 61.8% Fibonacci retracement level of 0.9031 will be in focus.

USD/CHF: Daily chart

Trend: Bearish


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