USD/CHF Price Forecast: Keep a bearish vibe, crucial support level emerges near 0.8000
- USD/CHF strengthens to near 0.8050 in Monday’s early European session.
- The negative outlook of the pair remains in play below the 100-day EMA, but further consolidation cannot be ruled out.
- Key support level to watch is 0.8000; first upside target is seen at 0.8125.
The USD/CHF pair attracts some buyers to around 0.8050 during the early European session on Monday, bolstered by a firmer US Dollar (USD). Nonetheless, the weaker-than-expected US July Nonfarm Payrolls (NFP) report increased the likelihood of two Federal Reserve (Fed) rate cuts, which might cap the upside for the pair.
According to the daily chart, the bearish outlook of the pair remains intact, with the price holding below the key 100-day Exponential Moving Average (EMA). However, further consolidation looks favorable as the 14-day Relative Strength Index (RSI) hovers around the midline. This suggests the neutral momentum in the near term.
The key support level for USD/CHF is located at the 0.8000 psychological figure. A breach of this level could see a drop to 0.7911, the low of July 23. Sustained trading below the mentioned level could expose 0.7885, the lower limit of the Bollinger Band.
On the other hand, the key resistance level for the pair emerges at 0.8125, the upper boundary of the Bollinger Band. A decisive break above this level could pave the way to 0.8150, the high of July 31. The next upside barrier is seen at 0.8245, the 100-day EMA.
USD/CHF daily chart
