USD/CHF dips below 0.8400 and brings the 0.8295 long-term low back into play

The Dollar fails at 0.8450 and remains dangerously close to the long-term low of 0.8295.
Soft US data is fuelling hopes of Fed cuts and weighing on the US Dollar.
USD/CHF is on track to close the year with a nearly 10% depreciation.

Guillermo Alcala FXStreet

The US Dollar is reversing Thursday´s gains against the Swiss Franc. The pair has returned below 0.8400 approaching the 2015 low at the 0.8300 area in the last trading day of the year.

The pair is on track to end the year with a nearly 10% decline, hammered by the dovish pivot signaled by the Fed at its December meeting. Investors have ramped up bets of Fed cuts in early 2024, which have sent US Treasury yields plunging, dragging the US Dollar down with them.

In the calendar today, the Chicago PMI is expected to show a deterioration in business activity. This would be in line with the higher-than-expected jobless claims and the stalling home sales seen on Thursday and unlikely to provide significant support to the US Dollar.

From a technical perspective, the pair remains under strong bearish pressure, with the next support levels at 0.8345 and the 2015 low at 0.8295. Resistances are 0.8450 and 0.8515.

Technical levels to watch

USD/CHF

Overview
Today last price	0.8382
Today Daily Change	-0.0059
Today Daily Change %	-0.70
Today daily open	0.8441

Trends
Daily SMA20	0.8655
Daily SMA50	0.8819
Daily SMA100	0.8888
Daily SMA200	0.8907

Levels
Previous Daily High	0.8446
Previous Daily Low	0.8333
Previous Weekly High	0.8712
Previous Weekly Low	0.8514
Previous Monthly High	0.9113
Previous Monthly Low	0.8685
Daily Fibonacci 38.2%	0.8403
Daily Fibonacci 61.8%	0.8376
Daily Pivot Point S1	0.8367
Daily Pivot Point S2	0.8293
Daily Pivot Point S3	0.8254
Daily Pivot Point R1	0.848
Daily Pivot Point R2	0.852
Daily Pivot Point R3	0.8594

Author

Guillermo Alcala

FXStreet

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

AUD/USD sticks to neutral bias above 0.7100 amid cautious markets

AUD/USD holds steady above 0.7100 in the Asian session on Monday as the US Dollar stalls its modest pullback from the highest level since late July amid persistent geopolitical uncertainties. The PBOC status quo on Loan Prime Rates also weighs on the Aussie. However, bets on another RBA rate hike continue to underpin the Australian Dollar ahead of the Trump-Xi Summit.

USD/JPY eases below 157.00 amid looming intervention risks

USD/JPY is easing back below 157.00 in Asia on Monday, undermined by modest Japanese Yen strength amid looming intervention risks after Friday's BoJ rate check. A Japanese holiday also keeps traders on edge amid escalating geopolitical tensions between Russia and Ukraine and in the Middle East. As a result, the US Dollar pauses its pullback, limiting the pair's downside.

Gold: Sellers test $4,350 on renewed USD upside

Gold kicks off the new week on a weaker note following Friday's failure near the $4,400 mark. The commodity currently trades near the $4,350 level as traders await further developments surrounding the Middle East crisis and their implications for inflation. This would influence interest rate expectations and, in turn, drive the non-yielding bullion.

Dogecoin extends gains as ETF inflows return and momentum improves

Dogecoin extends its recovery, trading above $0.088 after gaining nearly 6% last week. The bullish price outlook is supported by the return of institutional demand through DOGE spot Exchange Traded Funds. Meanwhile, improving momentum indicators and signs of whale accumulation suggest a positive outlook for the dog-themed meme coin.

Economics week ahead

This week is light on the domestic data front, with focus on Thursday's new home sales report. We expect sales to partially recover in August, rising 2.6% to a 623K pace after a sharp decline in July. Higher mortgage rates continue to weigh on affordability and demand, though builder incentives remained in place and conditions did not worsen materially during the month.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.