• The US Dollar extends losses after failure at 0.7972, hitting session lows at 0.7953.
• The US Dollar Index is gaining bearish traction after a period of consolidation earlier today.
• The USD/CHF has a key support area between 0.7940 and 0.7950.

The US Dollar keeps trading within the last few days’ range against the Swiss Franc, but intra-day technical indicators start showing an incipient bearish momentum as the pair approaches 0.7950 following rejection at 0.7972.

The USDollar Index, which measures the value of the US Dollar against the most traded currencies, extends losses on Monday, following a period of hesitation, as speculation about a “dovish cut” by the Fed increases. 

USD/CHF is trading within a descending wedge

From a technical standpoint, the hourly chart shows an increasing bearish momentum after the pair’s failure at the 0.7970 area earlier today. Price action shows a descending wedge. This pattern suggests a potential bullish outcome, but so far, bears have the upper hand.

On the downside, a key support area emerges between the September 11 low, at 0.7950, and the wedge bottom, now around 0.7940. Further down, the next target would be the September 9 low, at 0.7915.

A rebound from current levels, on the other hand, would be tested at the intraday high, near 0.7970, and Friday’s high, at 0,7985. Further up, the Wedge’s target would be the September 11 high, at 0.8005.