USD/CHF Technical Analysis: Oversold conditions warrant some consolidation/a modest rebound

   •  The pair extended last week's retracement slide from 20-month tops and remained under some intense selling pressure for the third consecutive session on Tuesday.

   •  The overnight break below 200-period SMA on the 4-hourly chart and 23.6% Fibo. retracement level of the 0.9542-1.0129 upsurge was seen as a key trigger for bearish traders.

   •  Technical indicators on hourly charts are already pointing to near-term oversold conditions, though have just started gaining negative momentum on the daily chart.

   •  Hence, the pair seems more likely to find some support, or consolidate, near 38.2% Fibo. level, around the 0.9900 handle, before extending the bearish trajectory.
 

USD/CHF 4-hourly chart