- Greenback bulls may draw offers at the end of the pullback near the surface of the falling channel.
- The RSI (14) may follow the pullback and find support near 40.00.
- The bulls are firmer above the 61.8% Fibo retracement.
USD/CHF eased slightly after struggling several times to break above 0.9380. The asset performed subdued on Monday and is likely to continue its weakness after slipping below the intraday low at 0.9327.
On an hourly timeframe, USD/CHF exhibited a breakout of the descending channel formation with the upper end set off the March 17 high at 0.9418 while the lower end was marked at from the March 21 low at 0.9294. Usually, a descending channel rupture continues a pullback near the channel surface. The asset follows the pattern and moves towards the upper end of the descending channel to test the breakout.
Earlier, the asset showed a bullish reversal from the 61.8% Fibonacci retracement (placed from the March 6 low at 0.9165 to the March 16 high at 0.9460) at 0.9279.
The Relative Strength Index (14) moved into the 40.00-60.00 range from the bullish 60.00-80.00 range, signaling consolidation ahead. The RSI (14) is likely to follow the pullback and may find a cushion near 40.00 going forward.
If the asset tests the surface of the upper end of the bullish channel around 0.9320, some meaningful offers should lift the pair towards Thursday’s high at 0.9345, followed by Tuesday’s high at 0.9376 .
On the contrary, a slip below the round level support at 0.9300 will send the pair towards the March 10 high at 0.9284. Breaking the latter will take the asset down to the March 9th low at 0.9250.