|

USD/CHF Price Forecast: Slumps below 0.7800 after clash on 50-day SMA

  • USD/CHF falls 0.25% as rejection at 50-day SMA near 0.7819 halts rebound.
  • A break above 0.7878 would expose the 100-day SMA at 0.7909.
  • A drop below 0.7777 could open the door to 0.7700 and 0.7660 support.

USD/CHF retreats on Wednesday, down by 0.25% as the pair failed to post a daily close above the 50-day Simple Moving Average (SMA) of 0.7819. The Greenback trimmed some of its Wednesday’s gains on risk aversion. The pair trades below the 0.7800 figure, poised to remain glued to 'the figure' waiting for a fresh catalyst.

USD/CHF Price Forecast: Technical outlook

Price action suggests the USD/CHF downtrend remains in place, unless buyers push prices higher. The successive series of lower highs and lower lows is intact, but a challenge to the Tuesday daily high of 0.7878 would open the door to test immediate resistance at the 100-day SMA at 0.7909.

The Relative Strength Index (RSI) is bullish, but it has turned downwards, aiming for the RSI’s neutral level. This and USD/CHF’s second daily close below the 50-day SMA clears the path for a pullback.

On the downside, if the pair hurdles the Tuesday low of 0.7784, sellers could opt to challenge the 0.7700 figure. On further weakness, a key support trendline emerges at around 0.7660-0.7680.

USD/CHF Price Chart – Daily

USD/CHF Daily Chart

US Dollar Price This week

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

USDEURGBPJPYCADAUDNZDCHF
USD1.20%0.49%0.71%0.15%-0.31%0.28%1.60%
EUR-1.20%-0.72%-0.51%-1.04%-1.49%-0.88%0.39%
GBP-0.49%0.72%0.00%-0.33%-0.79%-0.18%1.10%
JPY-0.71%0.51%0.00%-0.50%-0.96%-0.27%0.92%
CAD-0.15%1.04%0.33%0.50%-0.50%0.22%1.43%
AUD0.31%1.49%0.79%0.96%0.50%0.61%1.91%
NZD-0.28%0.88%0.18%0.27%-0.22%-0.61%1.29%
CHF-1.60%-0.39%-1.10%-0.92%-1.43%-1.91%-1.29%

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 US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (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.

More from Christian Borjon Valencia
Share:

Editor's Picks

AUD/USD meets support near 0.7150

AUD/USD comes under renewed and quite strong selling pressure ahead of the Asia opening bell on Friday, drifting back toward multi-day troughs near 0.7150, where it seems to have met some decent contention for now. The Aussie’s decline follows the inflation-reignited uptick in the Greenback in response to robust US factory-gate prices in August.


USD/JPY consolidates around 153.50 as bears turn cautious ahead of US inflation

USD/JPY stabilizes above 153.50 during the Asian session on Thursday, but remains near a seven-month low set earlier this week as hawkish BoJ repricing continues to underpin the Japanese Yen. Meanwhile, rising September Fed rate-hike bets and escalating US-Iran tensions help ease US Dollar selling pressure, offering some support to the currency pair ahead of US inflation figures.

Gold remains weak, retargets $4,350

Gold keeps the choppy price action on Thursday, now slipping back toward the $4,350 region per troy ounce amid the robust bounce in the US Dollar as well as rising US Treasury yields across the curve, particularly following US Producer Prices and ahead of Friday’s more relevant US CPI data.

Bitcoin holds steady on positive ETF flows despite short-term holders cashing in

Bitcoin's exchange-traded funds (ETF) demand regime has notably shifted, with 30-day net inflows reaching $21.9 billion, according to a Thursday post by CryptoQuant. The data suggests that the average Bitcoin held through spot ETFs is now in profit, with the realized price of the ETF cohort standing at roughly $72,000 to $73,000.

ECB recap: A hawkish hike despite downside growth risks
The European Central Bank (ECB) increased the Deposit Facility Rate to 2.50%, the Refinancing Rate to 2.65% and the Marginal Lending Facility to 2.90%, effective from September 16. The decision was accompanied by a clear warning that the outlook remains highly uncertain, with risks tilted to the upside for inflation and to the downside for growth.
Venezuela’s 65-billion-barrel Oil deal could reshape America’s inflation fight
The United States (US) has secured unprecedented access to part of Venezuela’s vast Oil reserves. The timing is particularly significant as the war with Iran is disrupting Middle Eastern supplies, keeping energy prices elevated and reviving concerns about inflation.