|

USD/CHF Price Forecast: Hits one-week highs above 0.7840 as risk appetite ebbs

  • USD/CHF appreciates for the third day in a row and reaches one-week highs above 0.7840.
  • Market concerns about the US-Iran standoff are supporting the safe-haven USD.
  • The pair is attempting to consolidate above the neckline of a double botttom figure.

The US Dollar (USD) trades higher for the third consecutive day against the Swiss Franc (CHF) on Thursday, as the lack of progress in the US-Iran peace process dampens investors’ appetite for risk. The US Dollar is hovering above last week’s trading range at 0.7840, although upside attempts are limited below 0.7860 for now.

The Middle East conflict keeps driving markets, and the US-Iran standoff is keeping investors on edge, providing moderate support to the safe-haven US Dollar. Iranian forces have seized at least two vessels in the Strait of Hormuz and the US military redirected three Iranian vessels in the Indian Ocean in a tit-for-tat dynamic that is adding pressure on an already fragile ceasefire.

Chart Analysis USD/CHF

Technical Analysis

From a technical perspective, the USD/CHF near-term trend remains bearish, but recent price action hints at a potential bullish correction. The pair has pierced the neckline of a double bottom pattern at the 0.7840 area, and technical indicators show growing bullish momentum.

The Relative Strength Index (RSI) in the 4-hour chart is hovering just below 60, and the Moving Average Convergence Divergence (MACD) keeps crawling above the zero level. So far, however, these figures hint at an easing downside pressure, rather than a clear bullish reversal.

On the topside, the pair might find resistance at the 38.2% Fibonacci retracement of the April decline, near 0.7870. Further up, a key resistance area lies at the confluence of the downtrend resistance line and April 8 and 13 highs, around 0.7930.

A pullback below the April 16 and 19 highs at 0.7840, on the contrary, would ease the incipient bullish momentum and bring the April 17 and 20 lows at 0.7775 back into focus.

(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 New Zealand Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD0.02%0.10%0.08%-0.03%0.08%0.22%-0.01%
EUR-0.02%0.10%0.06%-0.05%0.04%0.20%-0.05%
GBP-0.10%-0.10%-0.02%-0.15%-0.04%0.11%-0.15%
JPY-0.08%-0.06%0.02%-0.13%-0.01%0.10%-0.11%
CAD0.03%0.05%0.15%0.13%0.13%0.25%0.00%
AUD-0.08%-0.04%0.04%0.00%-0.13%0.16%-0.13%
NZD-0.22%-0.20%-0.11%-0.10%-0.25%-0.16%-0.26%
CHF0.00%0.05%0.15%0.11%-0.00%0.13%0.26%

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).

Market

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.

More from Guillermo Alcala
Share:

Editor's Picks

EUR/USD looks well bid above 1.1600

EUR/USD extends its recovery and climbs back above the 1.1600 mark in quite an auspicious start to the week. Improved risk appetite following the US-Iran agreement to reopen the Strait of Hormuz continues to weigh on the US Dollar, lending support to the risk complex. Looking ahead, investors are likely to remain on the sidelines ahead of Wednesday's FOMC meeting.

GBP/USD climbs to multi-day highs around 1.3460

GBP/USD remains comfortably in positive territory north of 1.3400 the figure on Monday. Cable continues to draw support from an improvement in market sentiment after reports that the US and Iran have reached a framework agreement aimed at ending the conflict and reopening the Strait of Hormuz.

Gold extends the recovery, targets $4,400

Gold rallies on Monday and climbs well above the $4,300 mark per troy ounce. The precious metal benefits from renewed selling pressure on the Greenback as investors reassess the implications of the US-Iran agreement to end hostilities and reopen the Strait of Hormuz. Market participants now turn their attention to Wednesday's FOMC gathering.


Crypto Today: Bitcoin, Ethereum, XRP recovery gathers strength as US-Iran reach peace agreement

Cryptocurrency prices remain broadly elevated on Monday, led by Bitcoin’s upswing toward $66,000. Altcoins, including Ethereum and Ripple, mirror Bitcoin’s momentum, trading above $1,700 and $1.18.

Indonesia may have stabilised the Rupiah, but the bigger fight is not over

Bank Indonesia’s emergency rate hike has bought the Rupiah some time, but the currency’s hesitant response suggests it has not yet restored confidence. Can higher interest rates solve the Rupiah’s problem, or do the country’s challenges run deeper?

4.2% headline, 0.2% core: Why the Fed's next hike may be targeting the wrong problem

May's CPI put headline inflation at 4.2% on the year, up from 3.8% in April and the hottest reading since April 2023, while core prices rose just 0.2% on the month, undershooting the 0.3% consensus and halving April's pace.