USD/CHF Price Analysis: Rejected at 0.9650, sellers in control
- USD/CHF's minor bounce seems to have run out of steam at 0.9650.
- The pair is on the defensive and risks falling below 0.96, as per the weekly chart.
USD/CHF is currently trading at 0.9640, having picked up a bid at 0.9630 in early Asia and faced rejection at 0.9650 an hour ago.
The hourly chart MACD histogram has crossed above zero, indicating a bearish-to-bullish trend change. The hourly RSI has also bounced from the oversold or below-30 region.
Further, the futures on the S&P 500 are flashing green, indicating potential risk reset.
So, a corrective bounce to levels above 0.6850 cannot be ruled out, but will likely be short-lived, as longer duration charts are biased bearish.
Notably, the pair created a big bearish engulfing candle last week, signaling an end of a corrective bounce from the Jan. 6 low of 0.9613 and a resumption of the sell-off from the high of 1.0023 observed in November.
The last week's candle also closed below key support at 0.9660 (October low).
The odds, therefore, appear stacked in favor of a slide to levels below 0.96. The outlook, as per the weekly chart would turn bullish if and when the pair finds acceptance above the last week's high of 0.9767.