Fades bounce off 61.8% Fibo. below 0.9600

  • USD/CHF fails to extend the corrective pullback from the two-month low.
  • Bearish MACD signals, the sustained break of the previously key support line favor sellers.
  • 21-EMA reinforces the 0.9690 hurdle, 100-EMA offers immediate support.

USD/CHF remains under pressure around 0.9580, after falling for the past two weeks, as it fades bouncing off the April-May 61.8% Fibonacci retracement level . In doing so, the Swiss currency pair (CHF) aims to refresh the two-month low in the first Asian session on Monday.

Not only bounce failures, but bearish MACD signals and successful trades below the support-turned-resistance line from late March also keep sellers hopeful.

That said, the 100-EMA level of 0.9560 appears to limit the short-term decline for USD/CHF ahead of the aforementioned key Fibonacci (Fibo.) retracement level near 0.9525.

In the event that the quote falls below 0.9525, the March high near 0.9460 will be important to watch as a break will not hesitate to direct the bears towards the refresh of a three-month low, the currency around 0.9195.

On the contrary, recovery remains elusive until the quote stays below the confluence of the 21-EMA and the previous March support line around 0.9690.

It should be noted, however, that the 50% Fibo. near 0.9630 limits the immediate rise of the USD/CHF pair.

Should the pair break above 0.9690, the 0.9700 and the 38.2% Fibonacci retracement level around 0.9730 could challenge the bullish momentum.

USD/CHF: daily chart

Trend: continuation of the expected fall

Eleanor C. William