USD/CHF Price Analysis: Further downside appears more impulsive, 0.8860 in focus

• USD/CHF licks its wounds at the lowest levels in five weeks.
• Clear break of bullish channel, 50-DMA favor Swiss Franc (CHF) pair sellers amid bearish MACD signals.
• Two-month-old horizontal support may prod further downside as RSI (14) drops below 50.0.

USD/CHF bears take a breather at the monthly low, defensive near 0.8920 heading into Friday’s European session, after posting a stellar fall to convince sellers the previous day.

The Swiss Franc (CHF) pair dropped the most in a week while breaking the key technical supports to convince bears in refreshing the multi-day bottom. Also keeping the USD/CHF sellers hopeful are the bearish MACD signals.

It’s worth noting that the below 50.0 levels of the RSI (14) line suggests bottom picking and hence challenging the USD/CHF bears of late.

Even so, there prevails no barrier for the quote before it tests a two-month-old horizontal support zone near 0.8865-60.

Following that, the yearly low of around 0.8820 can act as an extra filter toward the south while the 61.8% Fibonacci Expansion (FE) of its March-May moves, near 0.8765, can lure the pair sellers afterward.

Meanwhile, the USD/CHF buyers may initially aim for the 50-DMA support-turned-resistance of around 0.8985, a break of which could direct the price to the 0.9000 round figure.

However, the bottom line of the six-week-old rising trend channel, around 0.9015, can act as the final check for the USD/CHF bulls before allowing them to return home.

USD/CHF: Daily chart

Trend: Further downside expected