USD/CHF Price Analysis: Bears take a breather on the way to 0.9085
- USD/CHF remains on the back foot despite latest inaction.
- Sustained break of fortnight-old ascending trend line, U-turn from 200-EMA favor sellers.
- Buyers need successful trading below 61.8% Fibonacci retracement to retake control.
USD/CHF holds lower ground near 0.9160 during early Wednesday, following a clear downside break of the previous key support line.
The Swiss currency (CHF) pair’s latest inaction could be linked to the market’s cautious mood ahead of the Federal Open Market Committee (FOMC) monetary policy meeting.
However, the bearish MACD signals and a U-turn from the 200-bar Exponential Moving Average (EMA) seem to join the trend line break to keep sellers hopeful.
That said, multiple lows marked during January 18-20, close to 0.9150-45, seem to restrict the immediate downside of the USD/CHF pair.
Following that, a previous monthly low, as well as the yearly bottom, near 0.9085 will be in focus.
It should be noted that the 0.9100 threshold could act as an additional downside filter for the pair traders to watch during the weakness past 0.9145 while the August 2021 low near 0.9018 may challenge the USD/CHF bears past 0.9085.
Meanwhile, recovery moves need to cross the previous support line from January 18, close to 0.9205 by the press time, to recall the pair buyers.
Even so, the 200-EMA and the 61.8% Fibonacci retracement level of the pair’s January moves, respectively near 0.9270 and 0.9285, could probe the USD/CHF upside.
USD/CHF: Four-hour chart
Trend: Further downside expected