• USD/CHF rebounds from one-month low but stays bearish for the fourth consecutive day.
• Five-week-old ascending support line, oversold RSI challenges the bears.
• Bulls need validation from 200-SMA previous support line from early February.

USD/CHF bears struggle to keep the reins around a one-month low as it pares intraday losses near 0.9200 during early Monday. Even so, the Swiss Franc (CHF) pair stays in the red for the fourth consecutive day, while extending the previous week’s pullback.

The quote’s latest rebound could be linked to the oversold conditions of the Relative Strength Index (RSI) line, placed at 14, as well as the pair seller’s inability to break the upward-sloping support line from February 03, close to 0.9165 at the latest.

It should be noted, however, that the bearish MACD signals and the pair’s sustained trading below the previous support line from February 01, close to 0.9315 by the press time.

Apart from the support-turned-resistance line, the 200-SMA also challenges the USD/CHF rebound, at 0.9275 as we write.

In a case where USD/CHF remains firmer past 0.9275, the odds of witnessing a run-up towards the previous week’s double tops near 0.9440 appear brighter.

Alternatively, a downside break of the five-week-long ascending support line of near 0.9165 won’t hesitate to challenge the early February’s swing low around 0.9130 ahead of highlighting the previous monthly low of 0.9060 for the bears.

Should the USD/CHF sellers dominate past 0.9060, August 2021 low near 0.9020 and the 0.9000 psychological magnet will be in focus.         

USD/CHF: Four-hour chart

Trend: Further recovery expected