The Swiss franc surges: The USD/CHF falls below 0.80 after poor employment data in the U.S.

• USD/CHF breaks below the 50-day moving average at 0.8020, closing under 0.8000 with momentum favoring further falls.
• Bears target 0.7950 and the July 23 low at 0.7911, with a clear path towards the yearly low at 0.7872.
• Buyers must reclaim 0.8000 and the 50-day moving average to challenge resistance at 0.8047 and the 100-day average at 0.8122.

What a blow the dollar has taken today! The USD/CHF pair has extended its losses this Friday, plummeting below the 50-day simple moving average at 0.8020. The damn U.S. employment report data, worse than expected, has practically sealed a rate cut by the Fed in September. As I write this, the pair is trading at 0.7980, with a fall of 0.94%.

Technical outlook of the USD/CHF

The price action shows that sellers have regained momentum significantly, achieving a daily/weekly close below the psychological mark of 0.8000. This has revived the possibilities of testing the annual low of 0.7872, reached on July 1.

The momentum indicates that the bears have total control, as shown by the Relative Strength Index (RSI).

That said, if the USD/CHF falls below 0.7950, the minimum of July 23 at 0.7911 will be exposed. A break of this level would clear the way to test 0.7900, followed by the annual minimum.

On the other hand, if buyers manage to recover 0.8000, they will have to overcome the 50-day moving average before testing the 20-day moving average at 0.8047. The key resistance is above, at the 100-day moving average at 0.8122.

The Swiss franc this week

The table shows the percentage change of the Swiss Franc (CHF) against the major currencies this week. The Swiss franc was stronger against the Canadian dollar.

The Swiss franc is proving to be an incredibly attractive safe haven in these times of economic uncertainty. With this kind of behavior, I wouldn't be surprised if we soon see a direct attack on levels we haven't seen in years. The Swiss economy, although small, remains a beacon of stability in a sea of global monetary chaos.

Bets that the Fed will cut rates in September are now nearly 100%, which is sinking the dollar against almost all major currencies. And the Swiss franc, with its traditional role as a safe haven, is being one of the biggest beneficiaries.

Personally, I believe we will see the USD/CHF pair testing 0.7900 in the coming sessions, especially if the economic data from the U.S. continues to disappoint. The weekly close below 0.8000 is a very negative technical signal that opens the door to more falls.