Retreats to 0.8850 within a month long bullish channel as Swiss GDP looms

• USD/CHF prints the first daily loss in three within one-month-old rising trend channel.
• Cautious mood ahead of Swiss Q2 GDP, US Labor Day holiday allows traders to pare recent moves.
• Buyers remains hopeful unless breaking 0.8700; June’s low acts as additional upside filter.

USD/CHF bulls take a breather ahead of the key Swiss Q2 GDP heading into Monday’s European session. In doing so, the Swiss Franc (CHF) pair prints the first daily loss in three despite staying within a one-month-old bullish trend channel.

That said, not only an upward-sloping bullish trend channel from early August but the bullish MACD signals and the upbeat RSI (14) line also keeps the USD/CHF pair buyers hopeful ahead of the Swiss second-quarter (Q2) Gross Domestic Product (GDP), expected 0.1% QoQ versus 0.3% prior.

It’s worth noting that an ascending trend line from last Wednesday, close to 0.8815 by the press time, quickly followed by the 0.8800 round figure, restricts the short-term USD/CHF downside.

Following that, a convergence of the 200-SMA and the bottom line of the stated bullish channel, close to 0.8755, will challenge the Swiss Franc (CHF) pair’s further downside.

Above all, the USD/CHF pair buyers remain hopeful unless they witness a clear downside break of the previous resistance line stretched from early June, close to 0.8700 at the latest.

On the flip side, the aforementioned channel’s top line surrounding 0.8890 precedes June’s bottom of around the 0.8900 threshold, to check the USD/CHF bulls.

USD/CHF: Four-hour chart

Trend: Bullish