USD/CHF Price Analysis: Retreats sharply from over 1-week high, back below 0.9700 mark

• USD/CHF failed to capitalize on its early uptick to over one-week tops.
• The set-up warrants some caution before placing any directional bets.

The USD/CHF pair quickly retreated around 45 pips from the 0.9725-30 region, or over one-week tops and has now dropped to the lower end of its daily trading range.

Bulls struggled to find acceptance above 100-day SMA, which coincides with a four-week-old descending trend-line and should act as a key pivotal point for short-term traders.

The mentioned trend-line, along with another ascending trend-line constituted towards the formation of a symmetrical triangle, indicating indecision over the pair's near-term direction.

Meanwhile, technical indicators have just started moving into the bullish territory but failed to gain any meaningful traction, also warranting some caution before placing directional bets.

Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond the daily swing highs, before positioning for any further near-term appreciating move.

On the flip side, the triangle support, currently near the 0.9635-30 region, is likely to protect the immediate downside, which if broken will open the room for a fresh leg down.

The pair then might accelerate the slide further towards challenging the 0.9600 round-figure mark before eventually dropping to the 0.9560 level en-route the 0.9515-10 support zone.

USD/CHF daily chart

Technical levels to watch