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USD/CHF Price Forecast: Bearish momentum gains traction below 0.7900

  • USD/CHF accelerates its reversal below 0.7900 amid a higher risk appetite.
  • A two-week ceasefire in Iran has boosted investors' mood.
  • The pair has broken the bullish structure from late-February lows.

The US Dollar (USD) accelerated its reversal against the Swiss Franc (CHF) on Wednesday, as investors pared back US Dollar long positions following the announcement of a ceasefire in Iran. The pair’s reversal from weekly highs right above 0.8000 extended to session lows near 0.7870 before picking up to the 0.7890 area at the time of writing.

The Greenback tumbled across the board following news reporting that the US and Iran had reached an agreement to stop the hostilities for two weeks, and allow safe passage for Gas and Oil tankers through the Strait of Hormuz.

Technical Analysis: USD/CHF breaks the bullish trendline support

Chart Analysis USD/CHF

The USD/CHF has slipped back below the ascending trendline support, confirming the end of the bullish cycle from February 27 lows. and providing bears confidence for a deeper correction.

The Relative Strength Index (RSI) hovers near 30 after dropping from above 60, signaling building downside momentum. The Moving Average Convergence Divergence (MACD) indicator holds below its signal line in negative territory, endorsing the view that rallies toward the recent breakdown area will face selling pressure.

The pair is now featuring a frail recovery attempt, but the support area between the 50% Fibonacci retracement of the March rally at 0.7860 and March 23 lows at 0.7835 is likely to attract selling pressure. On the upside, previous support at 0.7905 (April 1 low) is likely to act now as resistance ahead of the broken trendline, now at 0.7965.

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

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 Canadian Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-0.76%-1.04%-0.73%-0.10%-0.91%-1.44%-1.08%
EUR0.76%-0.30%0.02%0.66%-0.17%-0.74%-0.34%
GBP1.04%0.30%0.30%0.96%0.17%-0.41%-0.04%
JPY0.73%-0.02%-0.30%0.64%-0.15%-0.72%-0.34%
CAD0.10%-0.66%-0.96%-0.64%-0.78%-1.34%-0.99%
AUD0.91%0.17%-0.17%0.15%0.78%-0.58%-0.20%
NZD1.44%0.74%0.41%0.72%1.34%0.58%0.38%
CHF1.08%0.34%0.04%0.34%0.99%0.20%-0.38%

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).

Author

Guillermo Alcala

Graduated in Communication Sciences at the Universidad del Pais Vasco and Universiteit van Amsterdam, Guillermo has been working as financial news editor and copywriter in diverse Forex-related firms, like FXStreet and Kantox.

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