USD/CHF fell sharply on Tuesday, down more than 1.40%, falling to a fresh two-month low of 0.8879 after hitting a daily high of 0.9027, largely on the back of weak U.S. economic data. At press time, USD/CHF was trading at 0.8883, down 0.07% after the Asian market opened on Wednesday.
USD/CHF fell below the 200-day moving average (DMA) of 0.8994, accelerating the decline below the latest cycle low of 0.8887 on October 24. If USD/CHF falls towards the August 30 swing low of 0.8745, then there remains a risk of a downside test of 0.8700.
To resume the bullish trend, USD/CHF bulls must regain 0.8900 before they can hope to move closer to the 200-day moving average (0.8993) and then test 0.9000. Above this level, the next level of resistance will be the November 13 high at 0.9052.
