USD/CHF Price Analysis: Fades bounce off 27-month low within bullish triangle

• USD/CHF takes offers to refresh intraday low, retreats from top line of a two-week-old descending triangle.
• Sluggish oscillators suggest continuation of lower grind, multiple levels surrounding 0.8860 challenge Swiss Franc pair sellers.
• Bulls need validation from 200-HMA to retake control.

USD/CHF refreshes intraday low near 0.8705 as it drops back towards the lowest levels since January 2021 marked the previous day amid Thursday’s sluggish Asian session. In doing so, the Swiss Franc (CHF) pair retreats from the resistance line of a two-week-old bullish triangle, recently slipping beneath the 100-Hour Moving Average (HMA).

Given the unimpressive prints of the MACD signals and RSI (14), the USD/CHF is likely to continue declining.

However, multiple supports around 0.8860 appear a tough nut to crack for the Swiss Franc pair sellers to break.

Following that, the pair’s gradual south run towards the year 2021 low of around 0.8755 can’t be ruled out.

Meanwhile, the 100-HMA and the top line of the aforementioned triangle, respectively near 0.8910 and 0.8915, guard the short-term recovery of the USD/CHF pair.

It’s worth noting that the confirmation of the bullish triangle breakout, via a sustained break of 0.8915, isn’t an open invitation to the USD/CHF buyers as they need validation from the 200-HMA hurdle of 0.8935.

Also acting as an upside filter is the previous weekly high around the 0.9000 psychological magnet, a break of which could propel the quote towards the monthly top surrounding 0.9200.

USD/CHF: Hourly chart

Trend: Limited downside expected