USD/CHF Price Analysis: Extends pullback from four-month-old hurdle towards 0.9900

USD/CHF takes offers to refresh intraday low, snaps four-day uptrend near three-month high.
Overbought RSI, short-term resistance line direct sellers towards previous resistance line from July.
Bulls have a bumpy road to refresh the yearly high.

Anil Panchal FXStreet

USD/CHF renews intraday low around 0.9910 as it prints the first daily loss in five during Tuesday’s Asian session.

In doing so, the Swiss currency (CHF) pair reverses from a downward sloping resistance line from May. Also adding strength to the corrective move could be the overbought RSI conditions.

With this, the quote is on the way to the resistance-turned-support line from July, around 0.9850. However, July’s peak of 0.9885 may probe the intraday sellers of the USD/CHF pair.

It should be noted, however, that the 61.8% Fibonacci retracement of the pair’s May-August downturn, near the 0.9800 threshold, could also test the bears before directing them toward the 100-DMA support level near 0.9685.

Alternatively, recovery moves need to cross the aforementioned resistance line, at 0.9950 by the press time, to recall the USD/CHF buyers.

Following that, the 1.0000 psychological magnet and multiple hurdles around 1.0050 can test the bulls before highlighting the yearly peak of 1.0065.

Overall, USD/CHF is likely to witness further downside but the bears are far from taking control.

USD/CHF: Daily chart

Trend: Limited weakness expected

Additional important levels

Overview
Today last price	0.991
Today Daily Change	-0.0024
Today Daily Change %	-0.24%
Today daily open	0.9934

Trends
Daily SMA20	0.9718
Daily SMA50	0.9635
Daily SMA100	0.9686
Daily SMA200	0.95

Levels
Previous Daily High	0.9966
Previous Daily Low	0.9794
Previous Weekly High	0.9851
Previous Weekly Low	0.962
Previous Monthly High	0.9808
Previous Monthly Low	0.9371
Daily Fibonacci 38.2%	0.99
Daily Fibonacci 61.8%	0.9859
Daily Pivot Point S1	0.983
Daily Pivot Point S2	0.9726
Daily Pivot Point S3	0.9658
Daily Pivot Point R1	1.0002
Daily Pivot Point R2	1.007
Daily Pivot Point R3	1.0174

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.

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 meets resistance around $4,400

Gold kicks in the new trading with on the back foot, keeping its trade near $4,350 per troy ounce. The precious metal’s correction comes on the back of the firmer US Dollar and espite declining US Treasury yields across the curve.

Bitcoin hits $85,000 for the first time in eight months

Bitcoin price reclaims $85,000 on Monday, advancing last week’s 5% recovery toward an eight-month high. The recovery in King Crypto aligns with renewed institutional demand, with Exchange Traded Funds (ETFs) recording $433 million in inflows on Friday.

The week ahead: Fuel prices in focus as we lead up to key eco releases

Financial markets are in a strange position as we move to the final weeks of Q3, uncertainty and volatility continue to grip markets, but the oil price is falling; and European and US stocks are poised to open higher later on Monday. Market stresses are concentrated in sovereign bonds, and European and US yields had another scare late on Friday, and moved higher.

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.