USD/CHF Price Analysis: Retraces from weekly highs, targeting the 50-DMA

The USD/CHF retreats from 0.9886 in a volatile session, despite positive US data.
The Swiss franc has gained almost 1% in the last two trading days.
USD/CHF Price Analysis: Sellers are eyeing 0.9700, which would open the door for buyers to lift the pair towards 0.9800.

Christian Borjon Valencia FXStreet

The USD/CHF dives after reaching a weekly high on Thursday, around 0.9900, and plunges towards the 0.9770s region on upbeat US data, which pared expectations of a Federal Reserve larger-than-expected rate hike, which was cheered by investors, as reflected by global equities rising.

The USD/CHF is trading at 0.9775, near the daily lows, after hitting a 0.9840 daily high, just above the daily pivot, which once broken, paved the way for a free fall below 0.9800, and further extending towards the S1 pivot area around 0.9773.

USD/CHF Price Analysis: Technical outlook

USD/CHF Daily chart

The USD/CHF daily chart shows that it is still favoring longs. The ongoing pullback from weekly highs near 0.9900 could be capped around the 50-day moving average (DMA) at 0.9735, though the Relative Strength Index (RSI) at 56.03 keeps pushing lower, which means that sellers might be eyeing the 50% Fibonacci retracement at around 0.9690, looking forward for an RSI’s uptick, that could give buyers a go, to re-enter USD/CHF longs.

If that scenario plays out, USD/CHF’s first resistance would be 0.9700, followed by 0.9735 and 0.9800. Otherwise, the USD/CHF pullback could continue its fall towards the 61.8% Fibonacci level at 0.9644, followed by the figure at 0.9600.

USD/CHF Key Technical Levels

USD/CHF

Overview
Today last price	0.9778
Today Daily Change	-0.0061
Today Daily Change %	-0.62
Today daily open	0.9839

Trends
Daily SMA20	0.9673
Daily SMA50	0.9742
Daily SMA100	0.957
Daily SMA200	0.9391

Levels
Previous Daily High	0.9886
Previous Daily Low	0.9779
Previous Weekly High	0.9798
Previous Weekly Low	0.9562
Previous Monthly High	1.005
Previous Monthly Low	0.9495
Daily Fibonacci 38.2%	0.9845
Daily Fibonacci 61.8%	0.982
Daily Pivot Point S1	0.9783
Daily Pivot Point S2	0.9728
Daily Pivot Point S3	0.9676
Daily Pivot Point R1	0.989
Daily Pivot Point R2	0.9941
Daily Pivot Point R3	0.9997

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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