• USD/CHF clings to mild gains despite teasing bearish H&S formation on hourly chart.
• RSI conditions, one-week-old falling resistance line suggest Swiss Franc pair’s further grinding toward the south.
• 200-HMA precedes the key 0.8710 support to challenge bears.
• Buyers need validation from 0.8805 to retake control.

USD/CHF prints minor gains around 0.8740 heading into Tuesday’s European session, after a sluggish week-start.

In doing so, the Swiss Franc (CHF) pair defends Friday’s recovery from the 200-Hour Moving Average (HMA).

However, the hourly play suggests forming of the Head-and-Shoulders (H&S) bearish chart formation and teases the pair sellers, especially amid the mostly steady RSI (14) line.

It’s worth noting that the 200-HMA restricts immediate downside of the USD/CHF pair around 0.8725 but major attention is given to the stated H&S formation’s neckline surrounding 0.8710.

Should the quote breaks the 0.8710, it becomes theoretically vulnerable to drop towards 0.8570.

During the anticipated fall, the late July swing low of around 0.8660 and the 0.8600 round figure may act as buffers for the USD/CHF bears to watch.

On the contrary, an upside break of the descending resistance line stretched from the last Wednesday, close to 0.8760 at the latest, could bolster the bullish bias about the USD/CHF pair.

Even so, the monthly high marked in the last week around 0.8805 could act as the last defense of the USD/CHF bears.

USD/CHF: Hourly chart

Trend: Downside expected