USD/CHF Price Analysis: Corrects further from 2-1/2 month tops, downside seems limited
- USD/CHF edges lower for the second consecutive session on Wednesday.
- The set-up support prospects for some dip-buying near 0.6730-25 region.
The USD/CHF pair traded with a mild negative bias for the second consecutive session on Wednesday and retreated further from 2-1/2 month tops set in the previous session.
The overnight slide below 100-hour SMA and a subsequent weakness below 23.6% Fibonacci level of the 0.9629-0.9789 positive move were seen as a key trigger for bearish traders.
Meanwhile, technical indicators on the 1-hourly chart have moved on the verge of breaking into the oversold territory and maintained their bullish bias on the daily chart.
The technical set-up support prospects for the emergence of some dip-buying near the 61.8% Fibo. level, around the 0.9730-25 region and should help limit the downside.
Hence, it will be prudent to wait for some strong follow-through selling below the mentioned support before positioning for any further near-term depreciating move for the pair.
USD/CHF 1-hourly chart