USD/CHF Price Analysis: Plummets to two-year lows, below 0.8800

• USD/CHF eyes 2021 low at 0.8757 after the pair slid past the prior’s YTD low of 0.8819.
• RSI and RoC give mixed signals, warranting USD/CHF traders from opening fresh positions ahead of US CPI data
• Immediate resistance lies at the 0.8800 mark, while support lies at 0.8757.

USD/CHF plunges to new two-year lows as the greenback falls sharply ahead of the release of the Consumer Price Index (CPI) in the United States (US). At the time of writing, the USD/CHF is trading at 0.8799, down 1.04%, after hitting a high of 0.8918.

USD/CHF Price Analysis: Technical outlook

The USD/CHF remains downward biased and set to extend its losses to fresh multi-year lows, with the 2021 yearly low in sight at 0.8757. Notably, the USD/CHF peaked just below the 0.9000 figure, which capped the pair’s rallies since April 2023.

As the USD/CHF continues to trend lower, below 0.8800, the next support emerged at 0.8757. A breach of the latter will expose the 0.8750, followed by the 0.8700. As the pair edged lower, a divergence between the USD/CHF price action printing lower lows, the three-day Rate of Change (RoC) shows sellers are losing some momentum. Nevertheless, mixed signals between the latter and the Relative Strength Index (RSI), depicting sellers remain in charge, could refrain traders from opening fresh shorts before releasing crucial US economic data.

Contrarily, the USD/CHF first resistance would emerge at the 0.8800 mark. Once cleared, the USD/CHF could reach the June 16 swing low-turned resistance at 0.8902 before challenging the 20-day Exponential Moving Average (EMA) at 0.8942.

USD/CHF Price Action – Daily chart