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USD/CHF Is Diving And It Could Continue Lower Below 0.9000

Key Highlights

  • USD/CHF is declining and trading well below the 0.9200 pivot level.
  • A key bearish trend line is forming with resistance near 0.9125 on the 4-hours chart.
  • The US Durable Goods Orders increased 11.2% in July 2020, up from the last revised 7.7%.
  • The US Gross Domestic Product could contract 32.5% in Q2 2020 (Preliminary).


USD/CHF Technical Analysis

The US Dollar moved into a bearish zone below the 0.9200 region against the Swiss Franc. USD/CHF even traded close to the 0.9000 support and recently corrected higher.

Looking at the 4-hours chart, the pair recovered from the 0.9009 swing low. It climbed above the 0.9050 and 0.9080 levels. The pair even broke the 50% Fib retracement level of the downward move from the 0.9197 high to 0.9009 low.

However, the pair failed to gain strength above the 0.9150 level and the 100 simple moving average (red, 4-hours). It also failed to clear the 76.4% Fib retracement level of the downward move from the 0.9197 high to 0.9009 low.

Moreover, there is a key bearish trend line forming with resistance near 0.9125. A clear break above the 0.9125 resistance zone could open the doors for a fresh increase.

If not, there is a risk of more losses below the 0.9020 and 0.9000 support levels. The next support is near 0.8980, below which USD/CHF might test 0.8940.

Looking at EUR/USD, the pair is still holding the key 1.1720 support zone, while GBP/USD climbed above the 1.3200 resistance zone.

Upcoming Economic Releases

  • US Initial Jobless Claims - Forecast 1,000K, versus 1,106K previous.
  • US Gross Domestic Product Q2 2020 (Preliminary) – Forecast -32.5% versus previous -32.9%.