USD/CHF Continues Downslope as Pair Tests Key Support Levels Near 0.7930]

USD/CHF weakened almost 0.5% during Monday’s European session, hovering around 0.7930. Daily chart technical analysis shows the pair remains embedded within an ascending channel pattern, maintaining a cautiously bullish bias overall.

The Swiss franc found modest support as USD/CHF traded above the 50-day exponential moving average (EMA), though the nine-day EMA continued to cap upside momentum. This dynamic reflects near-term consolidation rather than a decisive directional move. The 14-day relative strength index (RSI) at approximately 54 indicates muted positive momentum, potentially offering temporary buying opportunities while short-term EMAs act as resistance levels.

Maintaining a neutral-bullish stance, USD/CHF continues to trade above both the nine-period and 50-period EMAs, with the shorter-term average positioned above the longer-term one—a technically constructive signal. The RSI holding around 60 remains in positive territory without reaching overbought territory, suggesting buyers still control the near-term tempo.

A tepid rebound toward the nine-day EMA at 0.7942 appears likely. Subsequent upward movement could propel the pair toward the six-month peak of 0.8042 (set March 31), followed by the ascending channel’s upper boundary near 0.8060. Clearance of this channel might open the door to the yearly high of 0.8171 from August 2025.

On the flip side, the primary downside support sits at the ascending channel’s lower edge around 0.7920, then the 50-day EMA at 0.7881. A breach of the latter could trigger a bearish shift, exposing the three-month low of 0.7761 recorded May 8th.

Source link