USD/CHF stands flat on quiet Thursday, with technical indicators near oversold territory

On Thursday, the USD/CHF pair experienced minor losses, nudging lower to trade around the 0.8835 mark. The marginal downtrend primarily stemmed from a relatively muted session, with the American traders on the sidelines celebrating Thanksgiving.

All eyes are on Friday when the S&P will release November's preliminary PMIs, which could impact the USD price dynamics and provide a clearer picture of the US economy. As the Federal Reserve (Fed) maintains a hawkish stance and could implement further tightening measures, positive figures may strengthen the USD via hawkish bets on the Fed.

A no-hike is already priced in for December, and markets are betting on rate cuts by mid-2024. However, it will come down to the incoming data, and before the last 2023 meeting, the Fed will get an additional Consumer Price Index (CPI) and Nonfarm Payrolls reports from November.

USD/CHF levels to watch

The indicators on the daily chart reflect that the pair may continue consolidating losses in the short term. The Relative Strength Index (RSI) nearing oversold conditions suggests that the selling momentum has been strong recently, indicating a potential short-term oversold bounce. However, the flat red bars of the Moving Average Convergence Divergence (MACD) give a nod towards a stagnant bearish sentiment. The pair is below the 20-day Simple Moving Averages (SMA), indicating that bears have gained some ground in the short term, reinforced by the bear's breather stance visible in the price chart.

On the broader scale, the pair is below the 20,100 and 200-day Simple Moving Averages (SMA), favouring the case of a bearish bias for the short-term.

Support Levels: 0.8820, 0.8800, 0.8780.
Resistance Levels: 0.8860, 0.8890 (100-day SMA),  0.8900.

USD/CHF daily chart