Remember USD/CHF’s resistance levels we were tracking last week? The pair just tagged a few of them!
Let’s see if that means USD/CHF is gearing up to jump back into its months-long trend.
USD/CHF 4-hour Forex Chart by TradingView
The dollar’s been making pips rain lately after Powell signaled the Fed isn’t in a rush to cut rates, with inflation still hot and the job market looking shaky.
On the flip side, the franc is still flexing its safe haven muscles. See, traders are still cautious with the Russia-Ukraine war and tariff risks in the European region.
The SNB added fuel too, brushing off long-term tariff worries, while Gov. Schlegel reminded everyone of the high bar to implementing negative interest rates.
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!
USD/CHF, which made fresh 2025 lows last week, has now climbed up to the .8000 psychological level.
What makes the area interesting is that it aligns with the R1 Pivot Point line, 200 SMA, and a trend line resistance that’s been around since late August.
Bearish candlesticks and momentum below .8000 could set USD/CHF up for a dip back to the .7950 minor area of interest, if not the .7900 Pivot Point or .7860 previous lows.
But the bulls could also just be taking a breather. Look out for green candlesticks and sustained trading above .8000, which could draw in enough buying pressure to push USD/CHF to the R2 Pivot Point, if not the .8100 psychological 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.
