USD/CHF Price Analysis: Further downside past 0.8900 appears impulsive

• USD/CHF stays pressured after reversing from one-week high the previous day.
• Failure to cross 100-EMA, easing bullish bias of MACD lures Swiss Franc buyers inside bearish megaphone formation.
• Two-month-old previous resistance line lures intraday sellers; bulls need 200-EMA breakout to convince markets.

USD/CHF remains depressed below 0.8900, down for the second consecutive day, as it retreats from the 200-EMA hurdle heading into Tuesday’s European session.

Apart from taking a U-turn from the 200-Exponential Moving Average (EMA), the easing bullish bias of the MACD and the pair’s sustained trading within a three-week-old bearish megaphone trend-widening chart pattern also keeps the USD/CHF sellers hopeful.

That said, the Swiss Franc (CHF) pair bears may initially aim for the previous resistance line from March 08, now immediate support near 0.8840.

Following that, the stated megaphone’s bottom line, around 0.8810 at the latest, quickly followed by the 0.8800 round figure, can test the USD/CHF bears.

On the flip side, USD/CHF pair’s rebound can challenge the 100-EMA hurdle of surrounding 0.8930.

In a case where the Swiss Franc (CHF) sellers manage to keep the reins past 0.8930, the stated megaphone’s top line and the 200-EMA, respectively near 0.8980 and the 0.9000 round figure, can act as the last defense of the USD/CHF bears.

Should the USD/CHF buyers manage to hold the line after 0.9000, the mid-March low and the previous monthly high, around 0.9070 and 0.9200 in that order, should gain their attention.

Overall, USD/CHF is likely to remain pressured but the downside room appears limited.

USD/CHF: Four-hour chart

Trend: Further downside expected