USD/CHF is finding technical support from a previous area of interest!
Will this help the pair extend its weeks-long uptrend?
Let’s take a closer look at the 4-hour chart:
USD/CHF 4-hour Forex Chart by TradingView
The U.S. dollar retraced its gains against the Swiss franc last week, after FOMC member Waller openly backed rate cuts.
That, along with upbeat U.S. data lifting risk appetite, gave the franc a leg up. Fresh tariff threats out of Washington also weighed on the dollar, dragging USD/CHF below the .8000 mark.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
This week, optimism around U.S. trade deals and solid corporate earnings could help the dollar bounce back.
USD/CHF has been climbing since early July, printing higher highs and higher lows. Right now, it’s sitting at a key support zone that lines up with an ascending channel, the 61.8% Fib retracement of its latest move, and the 100 SMA on the 4-hour chart.
If we see green candlesticks and strong buying pressure from here, the pair might retest its previous highs near .8060 or even shoot for new monthly peaks.
But if sellers stay in control and push the pair below .7950, USD/CHF could dip toward the .7900 support area.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
