USD/CHF Price Analysis: Oversold RSI could test bears around 0.9370-55 support zone

• USD/CHF extends week-start pullback towards the monthly low.
• Three-month-old horizontal area challenges sellers amid oversold RSI, 200-DMA restricts buyer’s entry.
• 61.8% and 78.6% Fibonacci retracement levels act as additional trading filters.

USD/CHF takes offers to refresh the weekly low near 0.9390 as sellers cheer the third consecutive daily fall heading into Thursday’s European session.

In doing so, the Swiss Franc (CHF) pair extends Tuesday‘s U-turn from 0.9600, as well as the previous day’s downside break of the 61.8% Fibonacci retracement level of January-November upside. That said, the bearish MACD signals add strength to the downside bias.

However, nearly oversold conditions of the Relative Strength Index (RSI), placed at 14, suggest limited downside room for the USD/CHF pair.

As a result, an area comprising lows marked during August and so far in November, around 0.9370-55, gains the major attention of the bears.

If at all the USD/CHF bears conquer the 0.9355 support, the 78.6% Fibonacci retracement level near 0.9310 and the 0.9300 round figure could act as additional downside filter to challenge the pair’s further declines.

On the contrary, March’s high of 0.9460 acts as an immediate upside hurdle for the USD/CHF bulls, a break of which could escalate the corrective bounce towards the 61.8% Fibonacci retracement level near 0.9500.

However, the pair buyers are likely to remain indecisive unless witnessing a clear upside break of the 200-DMA, around 0.9635, at the latest.

USD/CHF: Daily chart

Trend: Limited downside expected