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At 0.9840, the USD/CHF pair faces resistance near the 61.8 percent Fibo retracement level
In general, obstacles at the 61.8 percent Fibo retracement indicate a bearish reversal, but further filters are required. The RSI (14) is flashing symptoms of overbought conditions; hence, a lengthy correction cannot be ruled out. Rising 20- and 50-day exponential moving averages continue to favor dollar bulls.
After a corrective dip from Tuesday's high of 0.9858, the USD/CHF pair has showed a less confident comeback. The asset has stayed under the control of bulls since hitting a low of 0.9495 on June 29.
The asset failed to persist above the 61.8 percent Fibonacci retracement at 0.9839 (which is based on the high in June of 1.0050 and the low on June 29 of 0.9495). Nonetheless, a small retreat following Tuesday's 0.9859 high does not reflect a bearish turnaround.
At 0.9744 and 0.9733, respectively, the 20-period and 50-period Exponential Moving Averages (EMAs) are moving strongly, adding to the upward filters.
In addition, the Relative Strength Index (14) has not yet abandoned the bullish area of 60.00-80.00, indicating that upward potential remains intact. However, more corrections cannot be ruled out due to the overbought condition.
A definitive breach of Tuesday's peak at 0.9859 will propel the asset to the round-level resistance at 0.9900, followed by the starting price on June 16 at 0.9950.
Conversely, the Swiss franc bulls may gain power if the asset falls below the 38.2% Fibo retracement level at 0.9708. A recurrence of the same will drive the asset to its high on July 1 of 0.9642. A decline below the 1 July high will expose the asset to more losses below the 4 July low of 0.9562.
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