• USD/CHF reverses from the lowest level since January 2015.
• Oversold RSI triggers corrective bounce off multi-day low but convergence of key resistance lines prod Swiss Franc pair buyers.
• May’s low, 21-DMA act as additional upside filters to watch past 0.8630.
• Multiple swings around 0.8580 may prod bears ahead of highlighting 2015 bottom.

USD/CHF consolidates weekly/monthly losses around 0.8580-85 heading into Wednesday’s European session, printing the first daily gain in three.

In doing so, the Swiss Franc (CHF) pair bounces off the lowest level since January 2015 amid an oversold RSI (14) line.

The major currency pair’s recovery, however, appears doubtful amid the bearish MACD signals and the presence of the 0.8630 resistance confluence comprising the previous support line from early February and a fortnight-old descending trend line.

Even if the USD/CHF bulls manage to cross the 0.8630 hurdle May’s bottom of around 0.8820 will be a tough nut to crack for them before retaking control.

That said, 0.8600, 0.8700 and 0.8800 round figures may offer additional challenges to the pair buyers while the 21-DMA level of around 0.8845 acts as the final defense of the bears.

On the contrary, multiple levels around the 0.8580 level marked in January 2015 prod the USD/CHF bears before directing them to the year 2015 bottom of 0.8300.

Overall, the USD/CHF pair’s latest corrective bounce can be considered as bears taking a breather at the multi-day low.

USD/CHF: Daily chart

Trend: Limited recovery expected