The USD/CHF pair continues to trade within a narrow range, oscillating between 0.8400 and 0.85368 since August 20 (a month ago now). Most of the price action has been contained within this range, with short-term extremes on either side quickly fading away. Key technical levels include the 100-bar moving average on the 4-hour chart at 0.8476 and the 200-hour moving average just below at 0.8475. The 100-hour moving average is slightly lower at 0.8460.
In recent trading, the price has repeatedly tested the 0.8460 level, but it bounced back. The bullish spin has pushed the price into a swing zone between 0.8488 and 0.8500, with the rise capped at 0.84985. Despite the Fed’s 50bp rate cut, the USD/CHF pair remains within its 137-pip trading range that has dominated over the past month.
At the moment, the key level to watch is 0.8475, where the 100-bar and 200-hour moving averages converge. A sustained move above this level could indicate bullish sentiment, while a decline below it could signal a bearish trend. Currently, buyers are trying to gain momentum. Can they push the price above 0.8500? If so, the 38.2% retracement of the move down from the August high comes in at 0.8517, the falling 200-bar moving average on the 4-hour chart comes in at 0.85287, and the red boxed high comes in at 0.85368.