USD/CHF Price Analysis: Bears defend 50% Fibo retracement, 0.9600 eyed

• The greenback bulls are facing barricades around 50% Fibo retracement at 0.9690.
• A death cross, represented by the 50- and 200-EMAs signal more downside ahead.
• The RSI (14) has shifted into the bearish range of 20.00-40.00.

The USD/CHF pair has moved gradually towards 0.9690 after an intraday low of 0.9673 in early Tokyo. The rebound seems less confident and may attract offers after experiencing momentum loss in a small timeframe. On Tuesday, the asset extended its losses after violating Tuesday’s low at 0.9731.

The availability of barricades around 50% Fibonacci retracement (which is placed from June 29 low 0.9495 to July 14 high at 0.9886) at 0.9690 indicates that a bearish reversal is highly confirmed. The pair extended its losses after slipping below 38.2% Fibo retracement placed at 0.9738.

A death cross, represented by the 50- and 200-period Exponential Moving Averages (EMAs) at 0.9765 adds to the downside filters.

Adding to that, the Relative Strength Index (RSI) (14) is oscillating in a bearish range of 20.00-40.00, which indicates more downside ahead.

A decisive move below Tuesday’s low at 0.9654 will further strengthen the Swiss franc bulls to drag the asset towards the round-level support at 0.9600, followed by July 4 low at 0.9562.

On the flip side, an upside move above July 13 low at 0.9758 will send the asset towards July 13 high at 0.9827. A breach of the latter will drive the asset towards July 14 high at 0.9886.

USD/CHF hourly chart