Ella 
USD/CHF stays inside trend-extending pattern during 4-day rally, lacks bullish bias
RSI, MACD conditions suggest Swiss franc bulls return
200SMA, several days down resistance line increases upside hurdles
Bears may have to retrace from 0.8550-45 even if bearish extension pattern favors bears
USD/CHF is still hovering around 0.8720 after three consecutive rises, and it is difficult for the bulls to continue to gain the upper hand.
Heading into Tuesday’s European session, the pair retraced within a bearish extension pattern.
In addition to the bearish extension pattern, the RSI line is close to overbought and the MACD is about to form a dead cross also challenging the USD/CHF bulls after a three-day rally.
However, it is worth pointing out that the round figure of 0.8700 and the horizontal support of 0.8660-55 a week ago limit the short-term downside of the pair within the extension pattern.
After that, the exchange rate will quickly fall to 0.8630 and 0.8600 round numbers, and then the bottom line of the extended pattern at 0.8550-45 will challenge the bears of the currency pair.
On the other hand, the top line of the above pattern is located around 0.8760, challenging the short-term uptrend of USD/CHF.
Even if the resistance level of 0.8760 is broken, ignoring the trend extension pattern, the 200SMA and the descending resistance line since May 31 are close to the 0.8815 and 0.8885 and 0.8900 integers respectively, challenging the USD/CHF bulls.
If 0.8900 is breached, the bulls will point to the psychological barrier of 0.900.
