USD/CHF Price Analysis: March swing low is the next relevant target for bears

• USD/CHF has already confirmed a bearish break below a multi-month-old descending channel.
• Extremely oversold conditions warrant some caution before positioning for any further declines.
• The pair still seems vulnerable to break below the 0.9200 mark and retest March swing lows.

The USD/CHF pair added to this week's heavy losses and continued losing ground on the last trading day of the week. The downward momentum dragged the pair to its lowest level since March 9, around the 0.9230 region.

The pair already seems to have confirmed a fresh bearish break through a three-month-old downward sloping channel and hence, seems vulnerable to slide further. However, extremely oversold conditions on short-term charts warrant some caution before positioning for any further near-term depreciating move.

That said, the pair still seems vulnerable to break below the 0.9200 mark and retest March monthly swing lows, around the 0.9180 region. Hence, any recovery attempt might still be seen as a selling opportunity and is likely to remain capped near the trend-channel support breakpoint, around the 0.9300 mark.

Meanwhile, some follow-through selling below the 0.9180 area will be seen as a fresh trigger for bearish traders. This, in turn, should pave the way for an extension of the bearish trajectory further towards testing the 0.9100 round-figure mark.

USD/CHF daily chart

Technical levels to watch