• USD/CHF retreats inside a three-week-old bullish channel as RSI, MACD favor pullback.
• Multiple hurdles to test bears before giving them control.
• USD/CHF bulls need to cross 0.9860 hurdle for unstoppable strength.

USD/CHF takes offers to refresh intraday low around 0.9800, snapping a five-day uptrend near the highest levels in 1.5 months heading into Friday’s European session.

In doing so, the Swiss currency (CHF) pair eases from a three-week-old bullish channel’s upper line. The pullback also justifies the RSI (14) retreat from the overbought territory. Furthermore, the impending bear cross of the MACD line over the signal line also keeps the USD/CHF sellers hopeful.

With this, the latest decline is likely to extend and can easily break the 0.9800 threshold. However, a convergence of the two-month-old horizontal support area and the lower line of the stated channel, around 0.9740-45, appears a tough nut to crack for the USD/CHF bears.

Following that, a south-run towards the 200-SMA level near 0.9595 could quickly appear on the chart.

Meanwhile, recovery moves are likely to remain dismal as a convergence of the channel’s resistance line and multiple tops marked since July 12, around 0.9860, could challenge the USD/CHF bulls.

In a case where USD/CHF rallies past 0.9860, the odds of witnessing the 0.9900 as a quote can’t be ruled out.

USD/CHF: Four-hour chart

Trend: Pullback expected