USD/CHF Falls to Two-Week Low
This morning, the USD/CHF exchange rate slipped below 0.7944 for the first time since 1 October, as demand for safe-haven assets intensified — a trend also reflected in yesterday’s record gold price above $4,200.
The traditionally stable Swiss franc is strengthening amid rising global uncertainty and risk aversion:
→ In Japan, the upcoming prime ministerial election could significantly impact monetary policy, while France faces ongoing political turmoil.
→ In the United States, the government shutdown continues, and traders are closely watching developments around a potential trade deal with China, possibly to be discussed during an expected meeting between the two countries’ leaders.
Technical Analysis of the USD/CHF Chart
As noted in our 25 September analysis, the Swiss franc has appreciated through 2025 amid elevated geopolitical and macroeconomic risks, forming a downward channel on the USD/CHF chart (shown in red).
We also highlighted:
→ the possibility of a trend reversal around the 0.7900 support area;
→ potential breakout targets (shown in blue).
Since then, the bulls have indeed made progress, driving the price up towards point A and:
→ breaking above the red channel’s upper boundary;
→ overcoming the psychological 0.8000 level.
However, that progress has not been sustained. Among the bearish signals:
→ the median line of the blue channel acted as resistance;
→ the brief move above local highs around 0.8072 resembles a bearish liquidity grab.
From the bullish perspective, USD/CHF has now retreated into a zone that could act as support:
→ the upper boundary of the red channel;
→ the lower boundary of the blue channel.
The arrow highlights signs of a bullish engulfing pattern, suggesting that buyers may be using these support zones to stage a rebound within the blue channel. The 0.8000 psychological mark could serve as the first key test of their resolve.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
This morning, the USD/CHF exchange rate slipped below 0.7944 for the first time since 1 October, as demand for safe-haven assets intensified — a trend also reflected in yesterday’s record gold price above $4,200.
The traditionally stable Swiss franc is strengthening amid rising global uncertainty and risk aversion:
→ In Japan, the upcoming prime ministerial election could significantly impact monetary policy, while France faces ongoing political turmoil.
→ In the United States, the government shutdown continues, and traders are closely watching developments around a potential trade deal with China, possibly to be discussed during an expected meeting between the two countries’ leaders.
Technical Analysis of the USD/CHF Chart
As noted in our 25 September analysis, the Swiss franc has appreciated through 2025 amid elevated geopolitical and macroeconomic risks, forming a downward channel on the USD/CHF chart (shown in red).
We also highlighted:
→ the possibility of a trend reversal around the 0.7900 support area;
→ potential breakout targets (shown in blue).
Since then, the bulls have indeed made progress, driving the price up towards point A and:
→ breaking above the red channel’s upper boundary;
→ overcoming the psychological 0.8000 level.
However, that progress has not been sustained. Among the bearish signals:
→ the median line of the blue channel acted as resistance;
→ the brief move above local highs around 0.8072 resembles a bearish liquidity grab.
From the bullish perspective, USD/CHF has now retreated into a zone that could act as support:
→ the upper boundary of the red channel;
→ the lower boundary of the blue channel.
The arrow highlights signs of a bullish engulfing pattern, suggesting that buyers may be using these support zones to stage a rebound within the blue channel. The 0.8000 psychological mark could serve as the first key test of their resolve.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.