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USD/CHF Price Analysis: Plummets below 0.9000, golden-cross at risk

  • USD/CHF drops sharply, signaling potential end to Fed's rate hikes with investors favoring CHF.
  • Pair's fall below the 50 and 200-day moving averages at 0.9000 could lead to further declines.
  • For recovery, USD/CHF needs to breach 0.9000, targeting the November 1 high at 0.9112.

USD/CHF plummets in the mid-North American session on Friday after an employment report in the United States (US) could mark the end of the Federal Reserve (Fed) tightening cycle. Therefore, the US Dollar (USD) remains offered, as investors piled into the Swiss Franc (CHF), as shown by the pair trading at 0.8979, down 0.87%.

The daily chart shows the pair is slightly tilted to the downside despite remaining sideways, as USD/CHF has fallen below the confluence of the 50 and 200-day moving averages (DMAs) at around 0.9000. In the case of a daily close below the latter, the major could dive to the next swing low seen at 0.8878, the October 24 low, before plunging to the August 30 daily low of 0.8745.

On the flip side, USD/CHF buyers must reclaim the 0.9000 figure – the confluence of the 50 and 200-DMAs- so they could remain hopeful of challenging the November 1 high at 0.9112, ahead of challenging the May 31 high at 0.9147. Up next would be the 0.9200 psychological level.

USD/CHF Price Chart– Daily

USD/CHF Technical Levels

USD/CHF

Overview
Today last price0.8982
Today Daily Change-0.0078
Today Daily Change %-0.86
Today daily open0.906
 
Trends
Daily SMA200.9013
Daily SMA500.8998
Daily SMA1000.8899
Daily SMA2000.9005
 
Levels
Previous Daily High0.9077
Previous Daily Low0.9018
Previous Weekly High0.9035
Previous Weekly Low0.8888
Previous Monthly High0.9244
Previous Monthly Low0.8888
Daily Fibonacci 38.2%0.9041
Daily Fibonacci 61.8%0.9055
Daily Pivot Point S10.9026
Daily Pivot Point S20.8992
Daily Pivot Point S30.8966
Daily Pivot Point R10.9085
Daily Pivot Point R20.9111
Daily Pivot Point R30.9145

Author

Christian Borjon Valencia

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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