USD/CHF Price Analysis: Bears run out of steam around mid-0.9200s on impending SNB move

• USD/CHF picks up bids to pare losses at the lowest levels since late March.
• Oversold RSI conditions could allow intermediate relief to traders.
• Previous support line from mid-2021, lows marked in August 2022 challenge buyers.
• SNB is likely to announce 50 bps rate hike, Rate Statement will be the key.

USD/CHF licks its wound near the lowest levels in 9.5 months as it prints the first daily gain in three days around 0.9250 during early Thursday. In doing so, the Swiss Franc (CHF) portrays the trader’s consolidation of recent losses ahead of the Swiss National Bank’s (SNB) monetary policy meeting.

Also read: USD/CHF floats at 9.5-month low around 0.9250 after Fed’s verdict, SNB eyed

Given the oversold RSI (14), the USD/CHF could extend the latest recovery moves towards regaining the 0.9300 threshold.

However, the support-turned-resistance line from June 2021, close to 0.9340 by the press time, could challenge the pair buyers afterward.

In a case where the pair buyers manage to cross the 0.9340 key hurdle, the August 2022 low near 0.9370 and the 61.8% Fibonacci retracement level of the pair’s upside from June 2021 to October 2021, near 0.9400, will be an important resistance for the bulls to tackle.

Additionally, the 21-DMA level of 0.9420 acts as the last defense of USD/CHF bears.

On the flip side, the latest trough surrounding 0.9215 and the 0.9200 round figure could challenge intraday USD/CHF sellers. Also likely to restrict the short-term downside of the pair is the 78.6% Fibonacci retracement level near 0.9190.

Should the USD/CHF bears keep the reins past 0.9190, the odds of witnessing a slump toward the yearly low near 0.9090 can’t be ruled out.

USD/CHF: Daily chart

Trend: Limited recovery expected