USD/CHF Price Analysis: Retreats further but holds above key trendline, eyes on 0.9000

USD/CHF holds above crucial support despite the second-day drop
The USD buyers struggle to recapture the 0.9000 mark.
Triple-bottom pattern hints at a potential bullish reversal.

Christian Borjon Valencia FXStreet

USD/CHF drops for the second straight day but remains above a one-month-old upslope support trendline amidst buyers’ failure to reclaim the 0.9000 figure on a risk-on mood environment. At the time of writing, the USD/CHF exchanges hands at 0.8933, losses 0.26% after reaching a daily high of 0.8970.

USD/CHF Price Analysis: Technical outlook

Although the USD/CHF remains downward biased in the short term, the downtrend remains suspect, as sellers couldn’t break below 0.8900 to test the year-to-date (YTD) low of 0.8819. That, alongside subsequent failure tests of USD/CHF sellers to surpass the 0.8920 area, formed a triple-bottom chart pattern, which warrants further upside.

If the above scenario plays out, the USD/CHF first resistance would be the 20-day Exponential Moving Average (EMA) at 0.8983, followed by the 50-day EMA at 0.9011. A breach of the latter, and the USD/CHF could rally towards the 100-day EMA at 0.9087 before challenging the 0.9100 figure.

Conversely, and the path of least resistance as oscillators remain in bearish territory, the USD/CHF first support would be 0.8920. Once cleared, the next support would be 0.8900, ahead of plunging toward the YTD low of 0.8819.

USD/CHF Price Action – Daily chart

USD/CHF

Overview
Today last price	0.8932
Today Daily Change	-0.0025
Today Daily Change %	-0.28
Today daily open	0.8957

Trends
Daily SMA20	0.9017
Daily SMA50	0.8979
Daily SMA100	0.9095
Daily SMA200	0.932

Levels
Previous Daily High	0.8979
Previous Daily Low	0.8912
Previous Weekly High	0.9013
Previous Weekly Low	0.8907
Previous Monthly High	0.9148
Previous Monthly Low	0.882
Daily Fibonacci 38.2%	0.8937
Daily Fibonacci 61.8%	0.8953
Daily Pivot Point S1	0.892
Daily Pivot Point S2	0.8882
Daily Pivot Point S3	0.8852
Daily Pivot Point R1	0.8987
Daily Pivot Point R2	0.9017
Daily Pivot Point R3	0.9054

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.