USD/CHF Price Analysis: Bearish megaphone teases Swiss Franc buyers above 0.8700

• USD/CHF lacks bullish bias within a trend-widening formation during four-day uptrend.
• RSI, MACD conditions suggest Swiss Franc buyer’s return.
• 200-SMA, multi-day-old descending resistance line add to the upside filters.
• Sellers may have to retreat from 0.8550-45 even as bearish megaphone favors downside bias.

USD/CHF remains sidelined near 0.8720 as bulls struggle to keep the reins after a three-day winning streak. In doing so, the Swiss Franc (CHF) pair retreats within a trend-widening formation called “bearish megaphone” heading into Tuesday’s European session.

Apart from the bearish megaphone, the nearly overbought RSI (14) line and the impending bear cross on the MACD also prod the USD/CHF bulls after a three-day uptrend.

It’s worth noting, however, that the 0.8700 round figure and one-week-old horizontal support around 0.8660-55 restrict the short-term downside of the Swiss Franc pair within a trend-widening chart pattern.

Following that, a quick fall towards the 0.8630 and the 0.8600 round figure will be imminent before the bottom line of the megaphone, close to 0.8550-45 challenges the pair sellers.

On the flip side, the stated chart formation’s top line of around 0.8760 challenges the immediate upside of the USD/CHF pair.

Even if the quote defies the trend-widening formation by crossing the 0.8760 hurdle, the 200-SMA and a downward-sloping resistance line from May 31, respectively near 0.8815 and 0.8885, as well as the 0.8900 round figure, challenge the USD/CHF bulls.

If at all the USD/CHF buyers keep the reins past 0.8900, their dominance will knock the 0.9000 psychological magnet.

USD/CHF: Four-hour chart

Trend: Limited downside expected