USD/CHF Price Forecasts: Rejected at 0.7800, approaches two-month lows at 0.7765

The US Dollar (USD) resumes its broader bearish trend against the Swiss Franc (CHF) on Friday, reversing Thursday’s gains and reaching levels a few pips above the two-month lows of 0.7765, as the market shifts its focus to the US Nonfarm Payrolls (NFP) report, due later on Friday. In Switzerland, the weak SECO Consumer Climate figures have failed to dent CHF strength.

April’s NFP data is expected to show a significant slowdown in employment creation, although the Unemployment Rate is forecast to remain steady at 4.3%. These figures will be scrutinized with interest for further insight into the US Federal Reserve’s next steps, as the divergences among the committee witnessed at last week’s monetary policy meeting have left investors wondering.

Technical Analysis: Bears eye the 0.7750 support area

USD/CHF keeps a bearish near-term bias with the pair unable to take a significant distance from two-month lows at 0.7765. The Relative Strength Index (RSI) in 4-hour charts hovers around 38, hinting at weak demand, and a slightly positive Moving Average Convergence Divergence (MACD) reading near the zero line only suggests shallow corrective potential rather than a sustained bullish reversal.

Bears are likely to be tested at the mentioned 0.7765 level (Thursday's low), although the main target is the March 10 low at 0.7748. A confirmation below here would bring the February 27 low, at the 0.7675 area, into focus.

Upside attempts have been capped at 0.7809 earlier on Friday, closing the path towards the weekly top near 0.7850. Further up, the April 13 and 29 highs near 0.7930 seem out of reach today.