USD/CHF Price Analysis: Retreats from monthly top towards 0.9700 on overbought RSI

• USD/CHF takes offers to renew intraday low, snaps three-day uptrend.
• Three-week-old bullish channel keeps buyers hopeful near 1.5-month high.
• 200-SMA adds to the downside filters, 0.9800 guards immediate recovery.

USD/CHF snaps a three-day uptrend as it refreshes daily lows near 0.9730 during Wednesday’s Asian session. In doing so, the Swiss currency (CHF) pair justifies the RSI (14) retreat from the overbought territory.

However, an ascending trend channel formation since August 11 joins bullish MACD signals to keep the pair buyers hopeful.

That said, a pullback towards the 61.8% Fibonacci retracement level of July-August downside, at 0.9690, appears to immediate support for the quote.

Though, a confluence of the stated channel’s support line and the 50% Fibonacci retracement, close to 0.9630, seems a tough nut to crack for the USD/CHF bears afterward.

Even if the quote breaks the 0.9630 support confluence, the 200-SMA level surrounding 0.9590 could challenge the sellers before giving them control.

On the contrary, the USD/CHF pair’s further upside could aim for the channel’s top, close to the 0.9800 threshold by the press time.

Should the pair buyers manage to cross the 0.9800 hurdle, the odds of witnessing a run-up towards the previous monthly peak near 0.9885 can’t be ruled out.

USD/CHF: Four-hour chart

Trend: Pullback expected