USD/CHF Price Forecast: Looks to build on strength beyond 0.7800 amid firmer USD

Source Fxstreet
  • USD/CHF scales higher for the second straight day as rising Iran tensions underpin the USD.
  • The USD bulls, however, seem hesitant and keenly await the US consumer inflation figures.
  • The technical setup warrants some caution before positioning for any further appreciation.

The USD/CHF pair attracts some follow-through buying for the second straight day, with bulls looking to extend the momentum further beyond the 0.7800 mark during the Asian session. Spot prices, however, remain within striking distance of a nearly two-month low, touched last Friday, as traders keenly await the release of the latest US consumer inflation figures before placing fresh directional bets.

The crucial US Consumer Price Index (CPI) report will influence expectations about the Federal Reserve's (Fed) policy outlook amid the possibility of a rate hike by the end of this year and drive the US Dollar (USD) demand. In the meantime, rising US-Iran tensions remain supportive of elevated Crude Oil prices, fueling inflation fears and underpinning the USD's reserve currency status. This, in turn, is seen as a key factor acting as a tailwind for the USD/CHF pair.

From a technical perspective, the recent failure to find acceptance above the 200-period Simple Moving Average (SMA) on the 4-hour chart and the subsequent slide favor bearish traders. Meanwhile, the price action has stabilised off recent lows, and the Relative Strength Index (RSI) has nudged above the midline towards 53, while the Moving Average Convergence Divergence (MACD) histogram has turned mildly positive but is yet to offset the weight of the trend barrier.

Furthermore, the broader structure still suggests a capped recovery, with the USD/CHF pair retaining a bearish bias in the near term. Hence, any further move up is likely to confront significant resistance near the 200-period SMA at 0.7873. A sustained break above this level would be needed to ease the current downside pressure and open the door to a more durable rebound. Until then, the USD/CHF pair remains vulnerable to renewed selling on rallies.

(The technical analysis of this story was written with the help of an AI tool.)

USD/CHF 4-hour chart

Chart Analysis USD/CHF

US Dollar Price Today

The table below shows the percentage change of US Dollar (USD) against listed major currencies today. US Dollar was the strongest against the Swiss Franc.

USD EUR GBP JPY CAD AUD NZD CHF
USD 0.23% 0.22% 0.25% 0.11% 0.23% 0.13% 0.26%
EUR -0.23% -0.02% 0.04% -0.15% 0.00% -0.12% 0.03%
GBP -0.22% 0.02% 0.04% -0.13% 0.00% -0.11% 0.04%
JPY -0.25% -0.04% -0.04% -0.17% -0.05% -0.14% -0.01%
CAD -0.11% 0.15% 0.13% 0.17% 0.12% 0.03% 0.15%
AUD -0.23% 0.00% 0.00% 0.05% -0.12% -0.09% 0.03%
NZD -0.13% 0.12% 0.11% 0.14% -0.03% 0.09% 0.12%
CHF -0.26% -0.03% -0.04% 0.01% -0.15% -0.03% -0.12%

The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the US Dollar from the left column and move along the horizontal line to the Japanese Yen, the percentage change displayed in the box will represent USD (base)/JPY (quote).

Disclaimer: For information purposes only. Past performance is not indicative of future results.
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