USD/CHF Price Analysis: Plummets to two-year lows, below 0.8800

USD/CHF eyes 2021 low at 0.8757 after the pair slid past the prior’s YTD low of 0.8819.
RSI and RoC give mixed signals, warranting USD/CHF traders from opening fresh positions ahead of US CPI data
Immediate resistance lies at the 0.8800 mark, while support lies at 0.8757.

Christian Borjon Valencia FXStreet

USD/CHF plunges to new two-year lows as the greenback falls sharply ahead of the release of the Consumer Price Index (CPI) in the United States (US). At the time of writing, the USD/CHF is trading at 0.8799, down 1.04%, after hitting a high of 0.8918.

USD/CHF Price Analysis: Technical outlook

The USD/CHF remains downward biased and set to extend its losses to fresh multi-year lows, with the 2021 yearly low in sight at 0.8757. Notably, the USD/CHF peaked just below the 0.9000 figure, which capped the pair’s rallies since April 2023.

As the USD/CHF continues to trend lower, below 0.8800, the next support emerged at 0.8757. A breach of the latter will expose the 0.8750, followed by the 0.8700. As the pair edged lower, a divergence between the USD/CHF price action printing lower lows, the three-day Rate of Change (RoC) shows sellers are losing some momentum. Nevertheless, mixed signals between the latter and the Relative Strength Index (RSI), depicting sellers remain in charge, could refrain traders from opening fresh shorts before releasing crucial US economic data.

Contrarily, the USD/CHF first resistance would emerge at the 0.8800 mark. Once cleared, the USD/CHF could reach the June 16 swing low-turned resistance at 0.8902 before challenging the 20-day Exponential Moving Average (EMA) at 0.8942.

USD/CHF Price Action – Daily chart

USD/CHF

Overview
Today last price	0.8797
Today Daily Change	-0.0057
Today Daily Change %	-0.64
Today daily open	0.8854

Trends
Daily SMA20	0.8957
Daily SMA50	0.8982
Daily SMA100	0.9067
Daily SMA200	0.9277

Levels
Previous Daily High	0.8918
Previous Daily Low	0.8852
Previous Weekly High	0.9005
Previous Weekly Low	0.8876
Previous Monthly High	0.912
Previous Monthly Low	0.8902
Daily Fibonacci 38.2%	0.8877
Daily Fibonacci 61.8%	0.8893
Daily Pivot Point S1	0.8831
Daily Pivot Point S2	0.8809
Daily Pivot Point S3	0.8765
Daily Pivot Point R1	0.8897
Daily Pivot Point R2	0.8941
Daily Pivot Point R3	0.8963

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.

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 remains depressed around $4,350 amid rate jitters, modest USD strength

Gold maintains its offered tone through the first half of the European session, and currently trades around $4,350, down over 0.50% for the day. The commodity, however, holds comfortably above a six-week low, touched last Wednesday as traders await further developments around the Middle East crisis and their implications for inflation. This, in turn, would influence interest rate expectations and, in turn, drive the non-yielding bullion.

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.