USD/CHF Price Analysis: Slumps below the 200-DMA, bears target the 50-DMA

USD/CHF bounces off the 50-DMA support at 0.8957, currently trading near 0.8987.
The 200-DMA at 0.9014 is a significant resistance, capping the pair's upside.
Slowing inflation in Switzerland initially boosted the pair towards 0.9200.
A recent decline in US bond yields, combined with a double-top pattern, has pressured the pair downwards.

Christian Borjon Valencia FXStreet

The USD/CHF extended its losses towards the 50-day moving average (DMA) at 0.8957, though bounced off at that level, and finished Wednesday’s session at around 0.8987, capped on the upside by the 200-DMA. As Thursday’s Asian session begins, the major exchanges hands at 0.8987, almost flat.

Revisiting the USD/CHF after a week's absence, the pair trades in between the 50 and 200-DMA, with the latter at around 0.9014, exerting downward pressure on the pair. As inflation in Switzerland continued to slow down, traders bought the pair, lifting prices toward 0.9200. But the recent fall in US bond yields sparked the major’s recent leg down, coupled with a double-top chart pattern.

Given the backdrop, the USD/CHF pair is trading sideways. A break below the 50-DMA would expose the 0.8900 figure, followed by a September 11 swing low test of 0.8893. On the other hand, if USD/CHF reclaims the 200-DMA, the pair could rally and test the latest cycle high of 0.9088 before launching an attack toward the month-to-date (MTD) high of 0.9245.

USD/CHF Price Action – Daily chart

USD/CHF Technical Levels

USD/CHF

Overview
Today last price	0.8987
Today Daily Change	-0.0015
Today Daily Change %	-0.17
Today daily open	0.9002

Trends
Daily SMA20	0.9096
Daily SMA50	0.895
Daily SMA100	0.8905
Daily SMA200	0.9019

Levels
Previous Daily High	0.9032
Previous Daily Low	0.899
Previous Weekly High	0.9124
Previous Weekly Low	0.8987
Previous Monthly High	0.9225
Previous Monthly Low	0.8795
Daily Fibonacci 38.2%	0.9016
Daily Fibonacci 61.8%	0.9006
Daily Pivot Point S1	0.8984
Daily Pivot Point S2	0.8966
Daily Pivot Point S3	0.8942
Daily Pivot Point R1	0.9026
Daily Pivot Point R2	0.905
Daily Pivot Point R3	0.9068

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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