• USD/CHF picks up bids to pare recent losses around the lowest levels since March 2022.
  • Bearish MACD signals, failure to cross the support-turned-resistance signal further downside.
  • 61.8% Fibonacci retracement level guards immediate upside, bears can aim for previous yearly bottom.

USD/CHF traders lick their wounds around the 10-month low, picking up bids to 0.9210 amid early Tuesday morning in Europe.

In doing so, the Swiss currency (CHF) pair might have taken clues from the downbeat RSI (14) to pare recent losses. However, the bearish MACD signals keep the sellers hopeful.

Additionally favoring the bearish bias could be the quote’s previous failure to jump back beyond the support-turned-resistance line from January 2021, close to 0.9420 by the press time.

It’s worth noting that the 61.8% Fibonacci retracement level of the pair’s upside from January 2021 to October 2022, around 0.9290, restricts immediate recovery moves of the USD/CHF pair ahead of the previous support line near 0.9420.

Also acting as an upside filter is the August 2022 low of 0.9370 and 50% Fibonacci retracement near 0.9450.

Should the USD/CHF bulls keep the reins past 0.9450, the odds of witnessing a reversal to the late 2022 downtrend can’t be ruled out.

Meanwhile, the year 2022 low of 0.9090 appears immediate important support to watch during the USD/CHF pair’s further downside.

Following that, the 78.6% Fibonacci retracement level of 0.9055 could lure the bears ahead of highlighting the 0.9000 psychological magnet.

In a case where the USD/CHF pair remains weak past 0.9000, the mid-2021 low of 0.8926 and the year 2021 bottom surrounding 0.8755 will be in the spotlight.

USD/CHF: Weekly chart

Trend: Further downside expected