- USD/CHF plunges to a two-month low of 0.8889, down 0.72%, due to weaker-than-expected US labor data and a weakened US Dollar.
- The pair breaches a two-month support trendline, extending losses below 0.8900.
- The next target is the year-to-date low of 0.8819, pending a breakthrough of the 0.8850 psychological level.
- If buyers reclaim 0.8900, initial resistance lies at 0.8950, followed by the 20-day EMA at 0.8967 and the 50-day EMA at 0.8997.
USD/CHF dives into a new two-month-old on Friday after labor data from the United States (US) was softer than expected, weakening the US Dollar (USD). Earlier, the USD/CHF hit a daily high of 0.8970, which dropped below the 0.8900 figure on the data release. The USD/CHF is trading at 0.8889, down 0.72%.
USD/CHF Price Analysis: Technical outlook
From a daily chart perspective, the USD/CHF extended its losses past the 0.8900 mark after breaking a two-month-old support trendline. That exacerbated the USD/CHF fall below the June 16 swing low of 0.8901, intermediate support opening the door for a test of the year-to-date (YTD) low of 0.8819. Nevertheless, the USD/CHF must surpass the 0.8850 psychological level on its way down.
Notably, the Relative Strength Index (RSI) indicator and the three-day Rate of Change (RoC) suggested that sellers remain in charge, as both turned bearish.
Conversely, if USD/CHF buyers reclaim 0.8900, the first resistance would emerge at 0.8950. A breach of the latter, the USD/CHF could rally to the 20-day EMA at 0.8967, followed by the 50-day EMA at 0.8997. A breach of the latter will put into play the 0.9000 figure.
USD/CHF Price Action – Daily chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD tumbles further and hit new YTD lows near 1.0580
The Greenback now resumes its uptrend and advance to new highs. forcing EUR/USD to abandon its initial constructive stance and reach new yearly lows in the 1.0580 region on Wednesday.
GBP/USD accelerates its losses below 1.2700
GBP/USD breaks below the 1.2700 support on the back of the sudden resurgence of buying interest in the US Dollar following US CPI data and some hawkish remarks from the Fed's Logan.
Gold extends slide to fresh two-month low
After shedding some ground throughout the first half of the day, the US Dollar is back in fashion. XAU/USD trades at its lowest in two months in the $2,580 region and is technically poised to extend its slump.
Australia unemployment rate expected to remain steady for third straight month in October
The Australian Unemployment Rate is foreseen stable at 4.1% in October. Employment Change is expected at 25K, much lower than the 51.6K posted in September. AUD/USD is under pressure and may soon pierce the 0.6500 mark.
Trump vs CPI
US CPI for October was exactly in line with expectations. The headline rate of CPI rose to 2.6% YoY from 2.4% YoY in September. The core rate remained steady at 3.3%. The detail of the report shows that the shelter index rose by 0.4% on the month, which accounted for 50% of the increase in all items on a monthly basis.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.