USD/CHF consolidates gains at the 0.8845 area, bulls need a catalyst

USD/CHF trades at the 0.8845 zone with mild losses.
The bulls are having a hard time consolidating above 0.8850.
20-day SMA en route to perform a bullish cross with the 100-day SMA.

Patricio Martín FXStreet

The USD/CHF has traded sideways since early August in the 0.8700 - 0.88450 range, with bulls failing to gather momentum and seeming to await fresh catalysts.

According to the daily chart, the technical outlook for the USD/CHF remains neutral. The Relative Strength Index (RSI) indicates a stagnant bullish momentum with a flat slope above its midline, while the Moving Average Convergence (MACD) prints unchanged green bars. The four-hour chart also shows a clear neutral bias with no clear dominance and indicators having turned flat.

On the bigger picture, the pair is above the 20-day Simple Moving Average (SMA) but below the 100 and 200-day SMAs, suggesting that despite the recent bearish sentiment, the bulls are still resilient, holding some momentum but that for the longer term, the bears have the upperhand. Traders should eye the convergence of the 20 and 100-day SMA towards the 0.8850 - 0.8880 range as they are about to perform a bullish cross. It's worth mentioning that when a shorter-term SMA crosses above a longer-term SMA, it's usually considered bullish for the pair in the short term.

For this week, a fundamental catalyst is the release of the ISM Services PMI from the US which could influence the bets of the markets on the next Federal Reserve (Fed) decisions and, hence, the USD price dynamics.

Support levels: 0.8800 (20-day SMA), 0.8750, 0.8700.

Resistance levels: 0.8850, 0.8880 (100-day SMA), 0.8900.

USD/CHF Daily Chart

USD/CHF

Overview
Today last price	0.8847
Today Daily Change	-0.0010
Today Daily Change %	-0.11
Today daily open	0.8857

Trends
Daily SMA20	0.8796
Daily SMA50	0.8783
Daily SMA100	0.8882
Daily SMA200	0.9067

Levels
Previous Daily High	0.8864
Previous Daily Low	0.8795
Previous Weekly High	0.8865
Previous Weekly Low	0.8745
Previous Monthly High	0.8876
Previous Monthly Low	0.869
Daily Fibonacci 38.2%	0.8838
Daily Fibonacci 61.8%	0.8821
Daily Pivot Point S1	0.8814
Daily Pivot Point S2	0.877
Daily Pivot Point S3	0.8745
Daily Pivot Point R1	0.8882
Daily Pivot Point R2	0.8907
Daily Pivot Point R3	0.8951

Author

Patricio Martín

FXStreet

Patricio is an economist from Argentina passionate about global finance and understanding the daily movements of the markets.

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