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USDCHF struggles to extend two-day downtrend at one-week lows.
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MACD signals further downside but RSI, key supports challenge bears.
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Buyers need validation from 21-DMA to retake control.
USDCHF bears take a breather around a one-week low as the quote seesaws near 0.9885 during Tuesday’s Asian session. In doing so, the Swiss Franc (CHF) pair struggles with the 50-day EMA and an upward-sloping support line from September 30.
It’s worth noting that the MACD signals are in favor of the bears targeting a clear downside break of the 0.9880-70 immediate support zone. However, the steady RSI (14) suggests further grinding of the USDCHF prices.
As a result, another support line from August 11, close to 0.9830 at the latest, gains major attention.
Should the quote drops below 0.9830, the odds of witnessing a slump toward the late September swing low near 0.9740 can’t be ruled out. That said, the 0.9800 threshold could act as a buffer during the fall.
Alternatively, recovery moves need to cross the 21-day EMA level surrounding 0.9950 to convince the USDCHF pair buyers.
Even so, the 1.0000 parity level could challenge the upside momentum.
Following that, multiple hurdles near 1.0070 might act as the last defense of the USDCHF bears, a break of which will highlight the yearly peak of 1.0147 for the bulls.
USDCHF: Daily chart
Trend: Recovery expected
ADDITIONAL IMPORTANT LEVELS
