USD/CHF PRICE ANALYSIS: TUMBLES TO TWO-MONTH LOWS BELOW 0.8900 AS BEARS REGAIN CONTROL
- USD/CHF drops more than 1.40% to a two-month low of 0.8879, influenced by soft US CPI.
- The pair's fall below the 200-day moving average strengthened the bearish bias, with potential targets at 0.8745 and the 0.8700 level.
- For a bullish reversal, the USD/CHF must breach the 0.8900 mark, aiming for the 200-DMA at 0.8993.
The USD/CHF plunged sharply on Tuesday, more than 1.40%, with the pair dropping to new two-month lows of 0.8879 after hitting a daily high of 0.9027, sponsored by soft US economic data. At the time of writing, the pair trades at 0.8883, down 0.07% as Wednesday’s Asian session begins.
The daily chart portrays the pair with a bearish bias. The USD/CHF drop below the 200-day moving average (DMA) at 0.8994 accelerated the downtrend, which witnessed a break of the latest cycle low seen on October 24 at 0.8887. Downside risks remain if USD/CHF tumbles toward the August 30 swing low of 0.8745, ahead of testing the 0.8700.
For a bullish resumption, USD/CHF buyers must reclaim 0.8900 to remain hopeful of lifting prices toward the 200-DMA at 0.8993, ahead of the 0.9000 figure. A breach of the latter, the next resistance will be the November 13 high at 0.9052
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