USD/CHF Price Analysis: Falls to two-month lows, below 0.8900

USD/CHF plunges to a two-month low of 0.8889, down 0.72%, due to weaker-than-expected US labor data and a weakened US Dollar.
The pair breaches a two-month support trendline, extending losses below 0.8900.
The next target is the year-to-date low of 0.8819, pending a breakthrough of the 0.8850 psychological level.
If buyers reclaim 0.8900, initial resistance lies at 0.8950, followed by the 20-day EMA at 0.8967 and the 50-day EMA at 0.8997.

Christian Borjon Valencia FXStreet

USD/CHF dives into a new two-month-old on Friday after labor data from the United States (US) was softer than expected, weakening the US Dollar (USD). Earlier, the USD/CHF hit a daily high of 0.8970, which dropped below the 0.8900 figure on the data release. The USD/CHF is trading at 0.8889, down 0.72%.

USD/CHF Price Analysis: Technical outlook

From a daily chart perspective, the USD/CHF extended its losses past the 0.8900 mark after breaking a two-month-old support trendline. That exacerbated the USD/CHF fall below the June 16 swing low of 0.8901, intermediate support opening the door for a test of the year-to-date (YTD) low of 0.8819. Nevertheless, the USD/CHF must surpass the 0.8850 psychological level on its way down.

Notably, the Relative Strength Index (RSI) indicator and the three-day Rate of Change (RoC) suggested that sellers remain in charge, as both turned bearish.

Conversely, if USD/CHF buyers reclaim 0.8900, the first resistance would emerge at 0.8950. A breach of the latter, the USD/CHF could rally to the 20-day EMA at 0.8967, followed by the 50-day EMA at 0.8997. A breach of the latter will put into play the 0.9000 figure.

USD/CHF Price Action – Daily chart

USD/CHF

Overview
Today last price	0.8888
Today Daily Change	-0.0064
Today Daily Change %	-0.71
Today daily open	0.8952

Trends
Daily SMA20	0.8976
Daily SMA50	0.8985
Daily SMA100	0.9074
Daily SMA200	0.9287

Levels
Previous Daily High	0.8998
Previous Daily Low	0.8951
Previous Weekly High	0.9017
Previous Weekly Low	0.8912
Previous Monthly High	0.912
Previous Monthly Low	0.8902
Daily Fibonacci 38.2%	0.8969
Daily Fibonacci 61.8%	0.898
Daily Pivot Point S1	0.8936
Daily Pivot Point S2	0.892
Daily Pivot Point S3	0.8889
Daily Pivot Point R1	0.8983
Daily Pivot Point R2	0.9014
Daily Pivot Point R3	0.903

Author

Christian Borjon Valencia

FXStreet

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

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