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USD/CHF Price Analysis: Bulls Exhaust, Correction on the Horizon

  • USD/CHF advanced towards 0.8930, recording slight gains.
  • Positive risk sentiment influences weekly USD recovery; Even so, the DXY index is about to close a weekly rise of 0.60%.
  • US yields edged up slightly, consolidating the weekly rise.

Even though the currency markets are buoyed by the positive market mood and the falling US dollar (USD), the pair USD/CHF continued to gain ground, but the bulls are losing momentum. Still, the pair will close with a weekly rise of 0.86%, its highest since May.

For the rest of the session, the economic calendar will remain calm, and investors await new catalysts to place their bets regarding the next decisions of the Federal Reserve (Fed). Next week, the United States will report the Consumer Price Index (CPI) for August, which is expected to have accelerated. We will also have to keep an eye on retail sales for the same month, which are expected to have slowed.

As for Federal Reserve (Fed) expectations, CME’s FedWatch tool indicates that markets have already priced in a pause at the September 20 meeting, and the odds for the November and December meetings show that the odds for an increase of 25 basis points (bp) is around 40%. In this sense, as long as expectations of Fed tightening remain high, the USD’s losses are limited.

USD/CHF Levels to watch

The daily chart shows a neutral to bullish technical outlook for USD/CHF as signs of buying exhaustion become evident. Sloping flat above its midline, the Relative Strength Index (RSI) suggests that the pair could consolidate gains in the coming sessions, while the Moving Average Convergence Histogram (MACD) exhibits stagnant green bars.

Support Levels: 0.8900, 0.8877 (100-day SMA), 0.8850.

Resistance levels: 0.8950, 0.9000, 0.9030.

USD/CHF Daily Chart


Latest price today 0.8932
Today’s daily change 0.0004
Today’s daily variation 0.04
Today’s daily opening 0.8928
daily SMA20 0.8824
daily SMA50 0.8778
SMA100 daily 0.8879
SMA200 daily 0.9056
Previous daily high 0.894
Previous daily low 0.8908
Previous weekly high 0.8865
Previous weekly low 0.8745
Previous Monthly High 0.8876
Previous monthly low 0.869
Daily Fibonacci 38.2 0.8928
Fibonacci 61.8% daily 0.8921
Daily Pivot Point S1 0.8911
Daily Pivot Point S2 0.8894
Daily Pivot Point S3 0.8879
Daily Pivot Point R1 0.8942
Daily Pivot Point R2 0.8957
Daily Pivot Point R3 0.8974

Source: Fx Street

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