Volatilities in the weekly bullish channel are around 0.9700 for the USD/CHF exchange rate

As a result, the CHF/USD pair rises to a three-week high while also reversing a four-day surge in overbought RSI conditions.

The USD/CHF exchange rate may drop farther given the most recent fall from the channel's barrier and the oversold RSI. However, sellers may face a significant challenge because of the 200-SMA support around 0.9670.

Even if the pair drops below 0.9670, it has to break through the 0.9630 support to defy the bullish channel and persuade bears that they are right.

After that, a drop to the monthly low of 0.9495 is not completely improbable.

Alternately, the top line of the aforementioned channel, near 0.9740, may challenge the USD/CHF's gains before it reaches the 0.9780 level, which marks the 50% Fibonacci retracement of its slide from mid-May.

The 0.9820 level may serve as a stopgap on the road up to the 61.8 percent Fibonacci retracement level of 0.9846 and the mid-June swing bottom around 0.9875 if the pair recovers over 0.9780.