USD/CHF Price Analysis: Retreats from weekly highs amidst ongoing consolidation

USD/CHF trades at 0.9058, capped on the topside by 0.9117/20; on the downside by the confluence of the 50 and 20-day EMAs at 0.9041 and 0.9039.
A decisive break below 0.8980 could push USD/CHF towards June 9, 2021, low at 0.8925.
To continue bullish momentum, USD/CHF needs to break past the 0.9120 area, eyeing April 3 high at 0.9196.

Christian Borjon Valencia FXStreet

USD/CHF halts its rally to just two days, retraces from weekly highs reached on Monday at 0.9109, shy of testing the 100-day Exponential Moving Average (EMA) at 0.9117. Therefore, the USD/CHF is trading at 0.9058, below its opening price by 0.34%.

USD/CHF Price Analysis: Technical outlook

The USD/CHF daily chart is neutral to downward biased but cushioned on the downside by the presence of the 50-day Exponential Moving Average (EMA) at 0.9041, immediately followed by the 20-day EMA at 0.9039. Conversely, USD/CHF's first resistance is the weekly high, followed by the 100-day EMA and April 10 high at the 0.9117/20 area, tested three times. However, the USD/CHF remains trading below the latter since the end of March 2023.

If USD/CHF would resume its downtrend, it needs a decisive break below the June 9 swing low of 0.8980. Once cleared, the USD/CHF would slide toward June 9, 2021, a low of 0.8925, before testing the 0.8900 figure.

Conversely, for a USD/CHF bullish continuation, the pair must claim the 0.9120 area. Once broken, the USD/CHF next supply zone would be the April 3 high at 0.9196 before challenging the 0.9200 handle.

USD/CHF Price Action – Daily chart

USD/CHF

Overview
Today last price	0.9058
Today Daily Change	-0.0032
Today Daily Change %	-0.35
Today daily open	0.909

Trends
Daily SMA20	0.9043
Daily SMA50	0.8989
Daily SMA100	0.9118
Daily SMA200	0.9354

Levels
Previous Daily High	0.9109
Previous Daily Low	0.9016
Previous Weekly High	0.912
Previous Weekly Low	0.8984
Previous Monthly High	0.9148
Previous Monthly Low	0.882
Daily Fibonacci 38.2%	0.9074
Daily Fibonacci 61.8%	0.9051
Daily Pivot Point S1	0.9034
Daily Pivot Point S2	0.8978
Daily Pivot Point S3	0.8941
Daily Pivot Point R1	0.9128
Daily Pivot Point R2	0.9165
Daily Pivot Point R3	0.9221

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.