USD/CHF Price Analysis: Prods key resistance around 0.8840 ahead of Swiss inflation, US NFP
- USD/CHF struggles to extend the previous day’s strong gains ahead of top-tier Swiss, US data.
- Upbeat MACD signals, sustained trading beyond the key DMA convergence keeps Swiss Franc pair buyers hopeful.
- Six-month-old falling resistance line holds the key to pair’s further advances.
USD/CHF bulls attack the key resistance surrounding 0.8840 heading into Friday’s European session as they wait for Swiss Consumer Price Index (CPI) and the US employment data for August. In doing so, the Loonie pair defends the previous day’s rebound from the key moving averages while portraying the market’s cautious mood ahead of the top-tier data/events.
That said, a successful rebound from the convergence of the 21-DMA and 50-DMA, around 0.8790–80 by the press time, joins the bullish MACD signals to keep the buyers hopeful as they poke a downward-sloping resistance line from early March, close to 0.8840 at the latest.
It’s worth noting, however, that the previous monthly high of around 0.8880 and June’s bottom surrounding the 0.8900 threshold are some extra checks for the USD/CHF bulls before giving them control.
On the flip side, a daily closing below the stated DMA confluence around 0.8790–80 could recall the USD/CHF bears.
However, a five-week-long rising support line close to 0.8750 and the late July swing high of around 0.8700 will challenge the pair sellers ahead of directing them to the yearly low marked in July around 0.8550.
USD/CHF: Daily chart
Trend: Further upside expected