The USD/CHF pair extends its losses during the North American session on Wednesday, hitting a nearly two-month low of 0.8127 earlier in the day as traders dumped the US Dollar (USD) in favor of other haven assets like the Swiss Franc (CHF) or the Japanese Yen (JPY). Consequently, the pair edges down 0.45% and trades at 0.8172.
USD/CHF Price Forecast: Technical outlook
Even though a previous support trendline was broken, market structure is neutral to bullish-biased. USD/CHF fell below the 50-day Simple Moving Average (SMA) at 0.8227 last Monday and has since consolidated between that level and the 100-day SMA at 0.8159.
The Relative Strength Index (RSI) turned bearish, but the USD/CHF market structure of successive higher highs and higher lows remains intact.
For a bullish recovery, buyers must push USD/CHF above the 50-day SMA at 0.8227. In that outcome, the potential move back to the October 28 swing high of 0.8313 is on the cards. Once breached, the next stop is the October 14 high at 0.8395, immediately followed by 0.8400.
On the downside, bears must push the USD/CHF below the day’s low of 0.8127. After this, sellers would look for a push below 0.8100 on its way towards the 200-day SMA at 0.8000.
USD/CHF Price Chart – Daily
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