Low-rise jeans and boho maximalism aren’t the only things staging a comeback!
USD/CHF is retesting a familiar trend line support that’s already kept sellers in check twice since July.
Will the trend line hold again? Or will the third time be the charm for the bears?
The U.S. dollar is set for a busy start to the month as traders eye labor data that could sway September rate expectations.
Meanwhile, the Swiss franc may gain a little ground as safe-haven demand picks up on Fed policy and tariff uncertainty.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CHF, which has been making higher highs and higher lows since July, is now testing the .8000 psychological handle near the 61.8% Fib of July’s upswing and a trend line support that has held twice in two months.
Sustained trading below the trend line could take the pair to the .7950 handle or even the .7900 previous support.
But if green candlesticks show up at the trend line, USD/CHF could bounce toward the .8050 zone by the 100 and 200 SMAs and maybe even the .8100 area of interest.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
