The USD/CHF pair experienced an upward movement during the North American session; however, it continues to consolidate within the 0.7950-0.8000 range as market participants await the upcoming Federal Reserve monetary policy meeting next week. The pair is currently trading at 0.7966, reflecting an increase of 0.12%.
USD/CHF is up 0.12%, yet it remains below the confluence of the 20- and 50-day SMAs at 0.8019/23, which continues to favor sellers. Reports indicates a bearish trend but remains flat, implying potential near-term consolidation unless a breakout above 0.8000 or a decline below 0.7900 takes place. Potential upside targets are set at 0.8025 and the 100-day SMA at 0.8109; conversely, downside risks indicate a yearly low at 0.7872.
The daily chart for USD/CHF indicates that the price action is on the verge of approaching yearly lows. Spot prices continue to trade beneath the confluence of the 20 and 50-day Simple Moving Averages at 0.8019/23, suggesting that sellers are still dominant in the market.
The Relative Strength Index indicates a bearish trend, yet remains flatlined. The USD/CHF may exhibit a lack of direction in the short term, unless it surpasses significant support or resistance levels. Should USD/CHF rise above 0.8000, the subsequent resistance level would be 0.8025, with a target towards the 100-day SMA at 0.8109. On the other hand, a decline beneath 0.7900 would trigger an examination of the annual low at 0.7872.