USD/CHF Price Forecast: 50-day SMA break exposes 0.8040

The USD/CHF tumbles nearly 0.80% on Thursday as the Greenback weakens on rumours of a potential intervention in the FX markets to boost the Japanese Yen. Consequently, the pair fell from around daily highs of 0.8131, extending its losses to the current exchange rate near 0.8065.

USD/CHF Price Forecast: Technical outlook

The USD/CHF tumbled below the 50-day Simple Moving Average (SMA) of 0.8090, but so far is retaining its upward bias, as the pair is above a previously broken resistance trendline, turned support. Also, the 100- and 200-day SMAs remain below the current exchange rate, meaning that in the medium and long term, the overall trend remains up.

Nevertheless, momentum shifted in the near-term. The Relative Strength Index (RSI) turned bearish, an indication that sellers are in charge. Hence, in the short term, further downside is seen, unless buyers reclaim key technical resistance areas.

On the downside, the first support for USD/CHF is the July 30 low of 0.8039. Below lies 0.8000, followed by the 100-day SMA at 0.7992 and the 200-day SMA at 0.7934.

On the other hand, if USD/CHF reclaims 0.8100, the next resistance is the September 2 high at 0.8156, before traders test 0.8200.

USD/CHF Price Chart – Daily