USD/CHF Price Analysis: Awaits direction after consolidating around the 0.8720/30 region

• USD/CHF pulls back from weekly highs, shedding 0.43% after US data points to continued disinflation and a cooling labor market.
• Key upside barriers for the pair include the 0.8782 level, the psychological 0.8800, and the 50-day EMA at 0.8815.
• A potential downturn could see the pair targeting the significant 0.8700 level, possibly extending losses to the YTD low at 0.8554 if that support breaks.

USD/CHF retraces from weekly highs but remains trading sideways within a narrow 40-pip range after a tranche of US economic data indicates the disinflationary process continues while the labor market flashes signs of easing. Hence, the USD/CHF drops 0.43% and changes hands at around 0.8733.

USD/CHF Price Analysis: Technical outlook

Even though the USD/CHF registers losses, it remains neutrally biased, slightly tilted upwards, as the pair remains trading off the year’s lows of 0.8554. As of writing, after printing a daily low of 0.8689, it reversed its course, with buyers reclaiming the 20-day Exponential Moving Average (EMA) at 0.8737 after testing the last week’s low of 0.8699.

If USD/CHF resumes its uptrend above 0.8782 and conquers 0.8800, that could exacerbate a test of the 50-day EMA at 0.8815. A breach of the latter would expose the 0.8900 mark, followed by the 100-day EMA at 0.8926.

Conversely, a daily close below 0.8700 and the USD/CHF could test the year-to-date (YTD) low of 0.8554.

USD/CHF Price Action – Daily chart