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USD/CHF Price Forecast: Sinks below 0.80 on weak NFP data

  • USD/CHF breaks under 50-day SMA at 0.8020, closing below 0.8000 with momentum favoring further downside.
  • Bears eye 0.7950 and July 23 low at 0.7911, with path open toward year-to-date trough at 0.7872.
  • Buyers must reclaim 0.8000 and 50-day SMA to challenge resistance at 0.8047 and 100-day SMA at 0.8122.

The USD/CHF extended its losses on Friday, tumbling below the 50-day Simple Moving Average (SMA) at 0.8020. The release of a worse than expected US Nonfarm Payrolls report, cemented the case for a Fed rate cut at the September meeting. At the time of writing, the pair trades at 0.7980, down 0.94%.

USD/CHF Price Forecast: Technical outlook

Price action indicates that sellers reclaimed momentum, achieving a daily/weekly close below the 0.8000 figure. This reignited the chances for testing the year-to-date (YTD) low of 0.7872, reached on July 1.

Momentum indicates that bears are in control as depicted by the Relative Strength Index (RSI).

That said, if USD/CHF drops below 0.7950, this will expose July 23 low of 0.7911. A breach of the latter clears the path to test 0.7900, followed by the YTD low.

On the other hand, if buyers reclaim 0.8000, they must clear the 50-day SMA, before testing the 20-day SMA at 0.8047. Key resistance lies overhead at the 100-day SMA at 0.8122.

USD/CHF Price Chart – Daily

Swiss Franc Price This week

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies this week. Swiss Franc was the strongest against the Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.19%-0.10%0.28%0.68%-0.16%-0.06%-0.20%
EUR0.19%0.09%0.40%0.89%0.03%0.15%0.00%
GBP0.10%-0.09%0.20%0.77%-0.06%0.04%-0.04%
JPY-0.28%-0.40%-0.20%0.47%-0.44%-0.31%-0.43%
CAD-0.68%-0.89%-0.77%-0.47%-0.79%-0.73%-0.81%
AUD0.16%-0.03%0.06%0.44%0.79%0.10%0.02%
NZD0.06%-0.15%-0.04%0.31%0.73%-0.10%-0.07%
CHF0.20%-0.01%0.04%0.43%0.81%-0.02%0.07%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

Author

Christian Borjon Valencia

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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