“USD/CHF Builds Momentum: Falling Wedge Signals Possible Upside”

The USD/CHF pair is showing an important technical setup on the H4 timeframe. Price action is currently consolidating within a falling wedge pattern, often seen as a potential bullish reversal signal. Traders are closely monitoring the narrowing structure, as a breakout could trigger fresh momentum in the coming sessions.
Technical Outlook
Price has been moving within a contracting wedge, with support holding near 0.8050.
A confirmed breakout above resistance could open the path toward 0.8216, followed by the 0.8332 zone.
Until then, consolidation may continue, but momentum favors an eventual upside move.
Fundamental Drivers
Recent U.S. economic data provides a mixed backdrop for USD strength:
Manufacturing PMI (July 2025): Revised higher to 49.8, but still below 50, signaling contraction in factory activity.
Services PMI (July 2025): Surged to 55.7, its strongest level this year, highlighting robust growth in services.
This divergence paints a split economic picture:
Manufacturing weakness = downside risk for USD.
Services strength = upside support for USD.
Federal Reserve Implications
With services activity expanding strongly and inflation pressures still present, the Federal Reserve may delay interest rate cuts. Such a stance would lend medium-term support to the U.S. dollar, keeping the bullish wedge breakout scenario alive.
Conclusion
The USD/CHF is approaching a decisive moment. The falling wedge pattern suggests potential for a bullish breakout, with fundamentals adding mixed but slightly USD-supportive signals. Traders should watch 0.8050 support and the upper wedge boundary for confirmation of the next move.
By Md Golam Rabbani
Senior Partnership Manager & Forex Trainer