USD/CHF Price Analysis: Stumbles to five-month lows, before reclaiming 0.9500

• The Swiss franc strengthens vs. the greenback due to pessimistic investors’ mood, weighing on the US dollar.
• A break below 0.9495 would send the USD/CHF to the 200-day EMA.
• In the hourly chart, the USD/CHF might correct towards 0.9519-35 before testing the June lows around 0.9495.

The USD/CHF dwindles on Monday, for the fifth consecutive day, down 0.05%, as trader’s sentiment shifted sour, as Fed officials pushed back against a “dovish” tilt, while the US manufacturing slowed down but remained in expansionary territory, keeping Fed hopes of a “soft landing” alive. At the time of writing, the USD/CHF is trading at 0.9508.

USD/CHF Price Analysis: Technical outlook

The USD/CHF is neutral-to-downward biased after sliding below the 20, 50, and 100-day EMAs. Nevertheless, to further strengthen the bias, USD/CHF sellers need to reclaim the June 29 low at 0.9495, which, once cleared, would pave the way for further losses. If that scenario plays out, USD/CHF traders should expect a fall towards the 200-day EMA at 0.9410. On the other hand, an impulse towards 0.9600 is on the cards.

USD/CHF 1-hour chart

The USD/CHF is downward biased and about to plunge below the 20-hour EMA at 0.9502. The Relative Strength Index (RSI) at 48.68 is in bearish territory, but as it aims higher, that might propel the USD/CHF exchange rate to the 50-hour EMA at 0.9519, or the daily pivot at 0.9535, before resuming downwards.

Therefore, the USD/CHF first support would be the June 29 daily low at 0.9495. Once cleared, the next USD/CHF support will be the S1 daily pivots at 0.9476, followed by the S2 pivot at 0.9443.

USD/CHF Key Technical Levels