• USD/CHF takes offers to refresh intraday low as sellers poke 11-week-old support line.
• RSI retreat, bear cross on MACD hint at further downside.
• Two-month-old horizontal support in focus, bulls need validation from 50-DMA.

USD/CHF extends pullback from the 50-DMA to renew intraday low amid early Monday morning in Europe. That said, the Swiss currency (CHF) pair hinges on the short-term key supports as the bears keep reins around 0.9645 by the press time.

In addition to the pullback from the 50-DMA, a downward sloping RSI line and a looming bearish signal on the MACD also keep sellers hopeful.

However, a daily closing below the 0.9640 level becomes necessary before the quote drops to a horizontal area comprising multiple lows marked since late April, around 0.9540.

In a case where USD/CHF prices drop below 0.9540, the 0.9500 threshold and the 100-DMA level near 0.9490 will be an important challenge for the pair sellers.

Meanwhile, an upside clearance of the 50-DMA hurdle surrounding 0.9705 could aim for 0.9760 and the 0.9800 resistance levels before challenging a five-week-old horizontal resistance zone near 0.9865-70.

Should the USD/CHF bulls manage to cross the 0.9870 hurdle, the odds of their run-up towards the yearly top near 1.0065 can’t be ruled out.

USD/CHF: Daily chart

Trend: Further weakness expected