USD/CHF Price Analysis: Bulls struggle to keep the reins around 0.9400

• USD/CHF keeps the previous day’s recovery moves around multi-day top.
• Overbought RSI, key Fibonacci retracement level test buyers.
• Bullish chart, 21-day SMA challenge sellers’ entry, 50% Fibonacci retracement can entertain sellers.

USD/CHF holds steady around 0.9395 while keeping the previous days upside during the pre-European session trading on Tuesday.

In doing so, USD/CHF justifies overbought RSI and fears of fading the upside momentum before hitting the key hurdle, namely 61.8% Fibonacci retracement level of March 2020 to January 2021 downside.

While the pullback moves can eyes 50% Fibonacci retracement level of 0.9330, any further weakness will be challenged by 21-day SMA and two-month-old rising channel formation’s support, around 0.9295. Also highlighting the importance of the 0.9295 support level is the September 2020 top.

Alternatively, USD/CHF buyers will look for a fresh 8.5-month high before attacking the key Fibonacci hurdle to the north, close to 0.9465.

It should, however, be noted that the pair’s upside past-0.9465 will be tamed by the said channel’s resistance line surrounding 0.9600.

USD/CHF daily chart

Trend: Pullback expected