• USD/CHF remains depressed at four-month low, sidelined of late.
• Clear downside break of the 200-DMA, descending support line from late May favor sellers.
• 61.8% Fibonacci retracement level adds to the immediate upside filters.

USD/CHF licks its wounds at the lowest levels since mid-April, taking rounds to 0.9420-25 during Thursday’s Asian session.

The Swiss currency (CHF) pair dropped the most since mid-June the previous day in the aftermath of the US inflation data. The south-run also broke key supports and joins downbeat oscillators to keep bears hopeful of late.

That said, a daily closing below the 200-DMA and a descending previous support line from May 27, around 0.9435-30 by the press time, suggests the USD/CHF pair’s further weakness.

Also adding strength to the downside bias are the bearish MACD signals and the RSI (14) that still has some space before hitting the oversold territory.

With this, the USD/CHF sellers approach an upward sloping support line from January, near 0.9360.

Following that, the late January high near 0.9340 and February’s low near 0.9150 will be in focus.

Alternatively, corrective pullback remains elusive below the 0.9435-30 support-turned-resistance.

Even so, the 61.8% Fibonacci retracement level of the January-May upside, around 0.9465, could challenge the USD/CHF bulls.

USD/CHF: Daily chart

Trend: Further weakness expected