USD/CHF Price Analysis: Extends pullback from 200-SMA towards 0.8700 on US NFP day

• USD/CHF takes offers to refresh intraday low after reversing from three-week high the previous day.
• Bearish MACD signals, RSI’s retreat from nearly overbought territory lure Swiss Franc pair sellers.
• Multiple hurdles challenge downside momentum before highlighting yearly low marked the last week.

USD/CHF drops for the second consecutive day while printing mild losses near 0.8735 amid early Friday. In doing so, the Swiss Franc (CHF) pair extends the previous day’s U-turn from the highest level in three weeks ahead of the US Nonfarm Payrolls (NFP) data for July.

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That said, the USD/CHF pair’s latest weakness could also be linked to the failure to cross the 200-SMA, as well as bearish MACD signals and the RSI (14) line’s decline from nearly overbought territory.

With this, the Loonie pair is likely to decline further, which in turn highlights the July 25 swing high of around the 0.8700 round figure.

However, multiple levels marked during late July highlight key support areas around 0.8630 and 0.8565–55.

In a case where the USD/CHF drops below 0.8555, the odds of witnessing the pair’s quick fall toward the 0.8500 round figure can’t be ruled out.

Alternatively, a clear upside break of the 200-SMA surrounding 0.8800 can recall short-term USD/CHF buyers but a downward-sloping resistance line from May 31, close to 0.8865 at the latest, will be a tough nut to crack for them before retaking control.

Even so, the mid-June swing low of around 0.8905 can act as an extra filter towards the north.

USD/CHF: Four-hour chart

Trend: Pullback expected