USD/CHF Price Analysis: Struggles at around 0.8900 amid USD weakness, low volatility

• USD/CHF trades at 0.8908, unable to break the 0.9000 level.
• 50 and 200-day Moving Averages (DMAs) indicate a lack of trend, staying flat at 0.8774 and 0.9048, respectively.
• Short-term, technical outlook suggests a neutral to bearish bias, with key support level at around 0.8900.

The Greenback (USD) losses ground versus the Swiss Franc (CHF) after developments during the Asian session weakened the former. China’s positive data, mainly inflation back at positive territory, and hawkish words from the Bank of Japan (BoJ) Governor Kazuo Ueda spurred USD weakness. Hence, the USD/CHF is trading at 0.8908 after hitting a daily high of 0.8926.

USD/CHF Price Analysis: Technical outlook

During the last four trading days, the USD/CHF has remained at around the 0.8900 figure, unable to threaten the 0.9000 figure, as volatility keeps the pair consolidating at around a 40 pip range. It should be said the 50 and 200-day Moving Averages (DMAs) turned flat, with the former below price action at 0.8774, while the latter stays at a bearish position at 0.9048, indicating the lack of a trend. However, price action shows a higher series of peaks and throughs but at the expense of an increase in volatility that could break the trading range.

The USD/CHF one-hour chart portrays the pair as neutral to bearish biased, as price action sits below the 50-hour Simple Moving Average (SMA) at 0.8916. However, to reinforce the bias, sellers must crack the September 8 daily low of 0.8895 to challenge the next support area, seen at the September 6 daily low of 0.8881. Once cleared, the next stop would be the 200-hour SMA at 0.8871, followed by the September 5 low of 0.8819. Contrarily, the first resistance is seen at the 50-hour SMA at 0.8916, followed by the September 8 daily high of 0.8936.

USD/CHF Price Action – Hourly chart