USD/CHF Price Analysis: Bears approach 0.8990 within falling wedge
- USD/CHF holds lower grounds inside two-month-old bullish chart pattern.
- Downbeat MACD, RSI (14) suggest break of wedge towards the south.
- Four-month-long descending support line lures Swiss Franc bears; buyers need validation from 100-DMA
USD/CHF remains pressured around the intraday low of around 0.9020 heading into Wednesday’s European session. In doing so, the Swiss Franc (CHF) pair sellers approach the lower line of the two-month-old falling wedge bullish chart pattern.
It’s worth noting that the bearish MACD signals and an absence of oversold RSI (14) keep USD/CHF pair sellers hopeful of breaking the immediate support, namely the stated wedge’s lower line, around 0.8990 by the press time.
In a case where USD/CHF drops below 0.8990, the June 2021 low near 0.8925 holds the key to the quote’s further downside. A break that increases the odds of witnessing another fall towards a downward-sloping support line from early November 2022, around 0.8745 at the latest.
Alternatively, an upside clearance of the stated wedge’s top line, around 0.9100, confirms the bullish chart formation suggesting a theoretical target of around 0.9530.
During the run-up, the USD/CHF bulls need validation from the 100-DMA hurdle of near 0.9265.
Also acting as an upside filter is the previous monthly high of 0.9438.
Overall, USD/CHF remains on the bear’s radar while targeting a fresh 2023 low. However, the downside room appears limited unless the quote breaks 0.8925 mark.
USD/CHF: Daily chart
Trend: Further downside expected