If the USDCHF pair manages to reach the May 4th daily low of 0.8819, which also coincides with the 61.8% Fibonacci retracement level, it may transition to a neutral stance.

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• The USD/CHF could shift to a neutral bias if it reclaims the May 4 daily low of 0.8819, which converges with the 61.8% Fibonacci (Fibo) retracement level.

The pair currently trades last at 0.86874.

The previous day high was 0.8672 while the previous day low was 0.8641. The daily 38.2% Fib levels comes at 0.8653, expected to provide support. Similarly, the daily 61.8% fib level is at 0.866, expected to provide support.

USD/CHF rebounds from last Friday’s lows of 0.8640 and climbs on a strong US Dollar (USD) amid a risk-on impulse as Wall Street prints solid gains. The USD/CHF is trading at 0.8683, gains 0.31%, after hitting low of 0.8637.

The USD/CHF is yet to turn neutral, even though it recovered some ground during the last three trading days, with the pair gaining 1.50%. Should be said, the USD/CHF could shift its bias to neutral if it reclaims the May 4 daily low of 0.8819, confluence with the 61.8% Fibonacci (Fibo) retracement.

If that ceiling level is broken, the next resistance would emerge at the next confluence of the 50-day EMA and the 78.6% Fibo level at 0.8875/0.8900 area, followed by the 0.9000 mark.

Nevertheless, the USD/CHF path of least resistance is downwards and will resume its downtrend once sellers drag prices below the 23.6% Fibo retracement at 0.8659. On further weakness, the USD/CHF could extend its losses past the 0.8600 figure, followed by the year-to-date (YTD) Low of 0.8554.

From an oscillator standpoint, the Relative Strength Index (RSI), aiming upwards, suggests the USD/CHF upward correction could continue, but as it remains in bearish territory, once turning flat, could pave the way for a reversal. Contrarily, the three-day Rate of Change (RoC) portrays buyers entering the market. That said, mixed signals could refrain USD/CHF traders from opening fresh positions ahead of the FOMC’s meeting.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8687 at the time of writing. Pair opened at 0.8656 and is trading with a change of 0.36 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.881, 50 SMA 0.8934, 100 SMA @ 0.9002 and 200 SMA @ 0.9218.

The previous day high was 0.8672 while the previous day low was 0.8641. The daily 38.2% Fib levels comes at 0.8653, expected to provide support. Similarly, the daily 61.8% fib level is at 0.866, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.864, 0.8625, 0.8609
• Pivot resistance is noted at 0.8672, 0.8688, 0.8704

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