USD/CHF oscillates in a range just above mid-0.8600s, upside potential seems limited


  • USD/CHF attracts some buying on Monday, albeit lacks follow-through or bullish conviction.
  • The USD consolidates its recent recovery gains and continues to act as a tailwind for the pair.
  • The upside remains capped as traders keenly await the crucial FOMC decision on Wednesday.

The USD/CHF pair attracts some dip-buying near the 0.8640-0.8635 region during the Asian session on Monday, albeit struggles to capitalize on the modest intraday uptick. Spot prices currently trade just above mid-0.8600s and remain well within the striking distance of over a one-week high touched last Thursday.

The US Dollar (USD) manages to preserve its recent recovery gains from its lowest level since April 2022 touched last week and turns out to be a key factor acting as a tailwind for the USD/CHF pair. That said, expectations that the Federal Reserve (Fed) is nearing the end of its current policy tightening cycle hold back the USD bulls from placing aggressive bets and keep a lid on any meaningful upside for the major.

It is worth recalling that the markets have been pricing out the possibility of any further rate hikes by the US central bank after the widely anticipated 25 bps lift-off in July. Investors, however, doubt if the Fed will commit to a more dovish policy stance or stick to its forecast for a 50 bps rate hike by the end of this year. Hence, the focus will remain glued to the outcome of a two-day FOMC policy meeting on Wednesday.

Apart from the key FOMC decision, investors will scrutinize the accompanying monetary policy statement and Fed Chair Jerome Powell's comments at the post-meeting press conference for clues about the future interest rate-hike path. The outlook, in turn, will play a key role in influencing the near-term USD price dynamics and help investors to determine the next leg of a directional move for the USD/CHF pair.

In the meantime, concerns about a global economic downturn, along with the worsening US-China trade ties and geopolitical risks, could undermine the safe-haven Swiss Franc (CHF) and cap gains for the major. Heading into the key central bank event risk, traders on Monday will take cues from the flash US PMI prints for July, due later during the early North American session, for short-term opportunities around the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price 0.866
Today Daily Change 0.0004
Today Daily Change % 0.05
Today daily open 0.8656
 
Trends
Daily SMA20 0.881
Daily SMA50 0.8934
Daily SMA100 0.9002
Daily SMA200 0.9218
 
Levels
Previous Daily High 0.8672
Previous Daily Low 0.8641
Previous Weekly High 0.8684
Previous Weekly Low 0.8555
Previous Monthly High 0.912
Previous Monthly Low 0.8902
Daily Fibonacci 38.2% 0.8653
Daily Fibonacci 61.8% 0.866
Daily Pivot Point S1 0.864
Daily Pivot Point S2 0.8625
Daily Pivot Point S3 0.8609
Daily Pivot Point R1 0.8672
Daily Pivot Point R2 0.8688
Daily Pivot Point R3 0.8704

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD hits two-week tops near 1.0500 on poor US Retail Sales

EUR/USD hits two-week tops near 1.0500 on poor US Retail Sales

The selling pressure continues to hurt the US Dollar and now encourages EUR/USD to advance to new two-week peaks in levels just shy of the 1.0500 barrier in the wake of disappointing results from US Retail Sales.

EUR/USD News
GBP/USD surpasses 1.2600 on weaker US Dollar

GBP/USD surpasses 1.2600 on weaker US Dollar

GBP/USD extends its march north and reclaims the 1.2600 hurdle for the first time since December on the back of the increasing downward bias in the Greenback, particularly exacerbated following disheartening US results.

GBP/USD News
Gold maintains the bid tone near $2,940

Gold maintains the bid tone near $2,940

The continuation of the offered stance in the Greenback coupled with declining US yields across the board underpin the extra rebound in Gold prices, which trade at shouting distance from their record highs.

Gold News
Weekly wrap: XRP, Solana and Dogecoin lead altcoin gains on Friday

Weekly wrap: XRP, Solana and Dogecoin lead altcoin gains on Friday

XRP, Solana (SOL) and Dogecoin (DOGE) gained 5.91%, 2.88% and 3.36% respectively on Friday. While Bitcoin (BTC) hovers around the $97,000 level, the three altcoins pave the way for recovery and rally in altcoins ranking within the top 50 cryptocurrencies by market capitalization on CoinGecko. 

Read more
Tariffs likely to impart a modest stagflationary hit to the economy this year

Tariffs likely to impart a modest stagflationary hit to the economy this year

The economic policies of the Trump administration are starting to take shape. President Trump has already announced the imposition of tariffs on some of America's trading partners, and we assume there will be more levies, which will be matched by foreign retaliation, in the coming quarters.

Read more
The Best Brokers of the Year

The Best Brokers of the Year

SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.

Read More

Forex MAJORS

Cryptocurrencies

Signatures

Best Brokers of 2025