USD/CHF Price Forecast: Sinks below 0.80 on weak NFP data

The USD/CHF extended its losses on Friday, tumbling below the 50-day Simple Moving Average (SMA) at 0.8020. The release of a worse than expected US Nonfarm Payrolls report, cemented the case for a Fed rate cut at the September meeting. At the time of writing, the pair trades at 0.7980, down 0.94%.

USD/CHF Price Forecast: Technical outlook

Price action indicates that sellers reclaimed momentum, achieving a daily/weekly close below the 0.8000 figure. This reignited the chances for testing the year-to-date (YTD) low of 0.7872, reached on July 1.

Momentum indicates that bears are in control as depicted by the Relative Strength Index (RSI).

That said, if USD/CHF drops below 0.7950, this will expose July 23 low of 0.7911. A breach of the latter clears the path to test 0.7900, followed by the YTD low.

On the other hand, if buyers reclaim 0.8000, they must clear the 50-day SMA, before testing the 20-day SMA at 0.8047. Key resistance lies overhead at the 100-day SMA at 0.8122.