USD/CHF Price Analysis: Extends pullback from 200-SMA towards 0.8700 on US NFP day

USD/CHF takes offers to refresh intraday low after reversing from three-week high the previous day.
Bearish MACD signals, RSI’s retreat from nearly overbought territory lure Swiss Franc pair sellers.
Multiple hurdles challenge downside momentum before highlighting yearly low marked the last week.

Anil Panchal FXStreet

USD/CHF drops for the second consecutive day while printing mild losses near 0.8735 amid early Friday. In doing so, the Swiss Franc (CHF) pair extends the previous day’s U-turn from the highest level in three weeks ahead of the US Nonfarm Payrolls (NFP) data for July.

Also read: USD/CHF consolidates its recent gains above the 0.8740 area, eyes on US NFP

That said, the USD/CHF pair’s latest weakness could also be linked to the failure to cross the 200-SMA, as well as bearish MACD signals and the RSI (14) line’s decline from nearly overbought territory.

With this, the Loonie pair is likely to decline further, which in turn highlights the July 25 swing high of around the 0.8700 round figure.

However, multiple levels marked during late July highlight key support areas around 0.8630 and 0.8565–55.

In a case where the USD/CHF drops below 0.8555, the odds of witnessing the pair’s quick fall toward the 0.8500 round figure can’t be ruled out.

Alternatively, a clear upside break of the 200-SMA surrounding 0.8800 can recall short-term USD/CHF buyers but a downward-sloping resistance line from May 31, close to 0.8865 at the latest, will be a tough nut to crack for them before retaking control.

Even so, the mid-June swing low of around 0.8905 can act as an extra filter towards the north.

USD/CHF: Four-hour chart

Trend: Pullback expected

Additional important levels

Overview
Today last price	0.874
Today Daily Change	-0.0003
Today Daily Change %	-0.03%
Today daily open	0.8743

Trends
Daily SMA20	0.8692
Daily SMA50	0.888
Daily SMA100	0.8949
Daily SMA200	0.9161

Levels
Previous Daily High	0.8799
Previous Daily Low	0.8733
Previous Weekly High	0.8737
Previous Weekly Low	0.8552
Previous Monthly High	0.9005
Previous Monthly Low	0.8552
Daily Fibonacci 38.2%	0.8758
Daily Fibonacci 61.8%	0.8774
Daily Pivot Point S1	0.8718
Daily Pivot Point S2	0.8693
Daily Pivot Point S3	0.8652
Daily Pivot Point R1	0.8783
Daily Pivot Point R2	0.8824
Daily Pivot Point R3	0.8849

Author

Anil Panchal

FXStreet

Anil Panchal has nearly 15 years of experience in tracking financial markets. With a keen interest in macroeconomics, Anil aptly tracks global news/updates and stays well-informed about the global financial moves and their implications.

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