USD/CHF Price Forecast: Slips to 0.8020 as safe-haven boosts Franc

• USD/CHF extends losses after Powell signals rate cuts, boosting Swiss Franc's safe-haven appeal.
• Pair consolidates between support and 50-day SMA, with RSI indicating sideways momentum.
• Break below support exposes further downside, while resistance capped by 100-day SMA.

USD/CHF extended its downtrend for the second straight day, down 0.16%, trading at 0.8020 after hitting a daily high of 0.8076. A flight to safety has favored the Swiss Franc as the Dollar digest the dovish tilt by the Fed Chair Jerome Powell, who opened the door for adjusting interest rates.

USD/CHF Price Forecast: Technical outlook

The pair is consolidating between 0.8000 and the 50-day Simple Moving Averages (SMAs), at 0.8025s, respectively, lacking a clear directional bias ahead of a busy economic calendar. The Relative Strength Index (RSI) sits near its neutral line, reinforcing the view of sideways trade.

On the downside, a retest of 0.8000--the recent lower low from July 28--remains possible. A drop below would target 0.7944 from July 28, then the July 23 cycle low at 0.7911.  Conversely, a move above 0.8075 could pave the way toward 0.8100, with the 100-day SMA at 0.8139 acting as the next key resistance.

USD/CHF Price Chart - Daily