USD/CHF has pulled back to 0.8035 after a shooting star candlestick flagged bearish reversal pressure, with the pair now eyeing the 0.8000 handle. Softer US data pushed the Dollar lower, and momentum indicators point to sellers gaining the upper hand.
The USD/CHF trades at 0.8035, near ten-day lows, recoiling from two-day highs at 0.8120 after weaker-than-expected US data weighed on the Greenback. The US Dollar Index (DXY), which tracks the Dollar against a basket of six currencies, trades with losses of 0.55%.
A shooting star candlestick pattern confirmed on Thursday as the pair cleared its latest cycle low, and that break drove the move lower.
Buyers have lost control of the near-term picture. The Relative Strength Index is aiming toward its 50-neutral level after sliding below 60, a sign that sellers are gaining traction. As a result, the outlook tilts to the downside in the short term.
The first line in the sand is the psychological 0.8000 mark. A breach exposes the June 18 daily low of 0.7982, then the June 17 cycle low at 0.7910. On further weakness, the May 29 swing low of 0.7795 comes into view.
For the bulls to regain control, the pair must reclaim 0.8100. Above that, the year-to-date high sits at 0.8139, followed by the August 1, 2025 daily high at 0.8171 ahead of 0.8200.
Source: Mitrade
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