DXY Weakens, USD/CHF Follows Downward
USD/CHF is trending lower towards 0.7950 after being rejected at 0.7972, remaining within a range for the past few days. Pressure is coming from the DXY, which continues to decline due to expectations of a "dovish" Fed cut, causing the dollar to lose steam across most major pairs.
Technically (hourly chart), bearish momentum is starting to emerge after the pair failed to break through the 0.7970 area. The pattern formed resembles a descending wedge—theoretically potentially bullish—but sellers are currently in control, so the short-term bias remains tilted downward.
On the downside, a key support zone is located at 0.7950–0.7940 (September 11 low + base of the wedge). A clear break of 0.7940 would open up room towards 0.7915 (September 9 low), which would be a further target if selling pressure persists.
Conversely, if a rebound occurs, the nearest resistance lies at 0.7970 (intraday high) and then 0.7985 (Friday's high). A break above this level opens the opportunity to test 0.8005 (September 11 high), which also aligns with the potential target of the wedge pattern. Volatility has the potential to increase ahead of the Fed decision.
Key points:
Short-term bias: bearish, due to the weakening DXY and dovish Fed expectations.
Support: 0.7950–0.7940 → 0.7915 if broken.
Resistance: 0.7970 → 0.7985 → 0.8005.
Descending wedge pattern: bullish potential exists, but sellers are currently dominant.
Source: Newsmaker.id
