USD/CHF Technical Analysis. The USD/CHF pair has been under sustained selling pressure since the beginning of the week, as the US dollar continues to lose momentum amid market awaiting Federal Reserve statements and US jobs data. With traders continuing to favor safe-haven assets, we note weakness in any upward attempts, with trading consolidating below key technical resistance levels.
USD/CHF Technical Analysis: Technical Overview:
The pair is currently trading near 0.9040, having failed to return above 0.9067 during the European session. The price is moving within a clear downward channel on the H1 timeframe, and sellers appear to be in control as long as the 0.9075 level remains unbroken.
Technical Indicator Analysis:
- MACD: Moving in negative territory with clearly weak momentum, confirming the persistence of selling pressure.
- Stochastic: It is heading down again from neutral zones, maintaining the possibility of a bearish continuation.
- Moving Averages: The price is below the short-term and intermediate moving averages (20, 50, and 100), a clear indication of a continued downtrend.
Expected Scenarios
Negative Scenario:
If the price breaks the 0.9026 support level, the decline is likely to extend towards 0.9000 and then 0.8970, which are critical support levels that could form short-term retracement zones.
Bullish Scenario:
If the price rebounds from 0.9040 and succeeds in breaching 0.9067, it may regain some upward momentum towards 0.9090 and then 0.9115. However, this scenario requires strong support from upcoming US data.
Trading strategies based on Buy/Sell levels
| In case of buying | in case of selling | USDCHF |
| 0.82251 | 0.82095 | Entry point |
| First resistance: 0.82465 | First support: 0.81855 | Target Point 1 (TP1) |
| Second resistance 0.82765 | Second support 0.81555 | Target Point 2 (TP2) |
| 0.82095 | 0.82251 | Stop Loss (SL) |
USD/CHF remains under significant pressure below 0.9067, and a break of 0.9026 could accelerate losses below 0.9000. Conversely, any upward rebound requires a clear close above 0.9075. Traders are urged to exercise caution given the market’s sensitivity to any US data releases during the US session.
Upcoming Economic Data:
- US Interest Rate Decision – Wednesday, May 7
- Nonfarm Payrolls Report – Friday, May 9
- These data are pivotal in determining the direction of the US dollar and, therefore, directly impact USD/CHF.
