|

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

GBP/USD off highs, back to 1.3620

GBP/USD remains slightly on the defensive at the end of the week, receding to the low 1.3600s after hitting fresh tops past 1.3670 earlier in the day. Cable’s correction comes after two daily gains in a row and amid a tepid advance in the Greenback, while poor UK data also accompany the downside.

EUR/USD treads water below 1.1700

EUR/USD now trades with modest losses around 1.1670 following another unsuccessful atempt to advance past 1.1700 the figure in a convincing fashion. The pair’s decline follows a maginal rebound in the US Dollar as market participants continue to assess recent US data as well as developments from the US bond market.

Gold trims gains, recedes to the sub-$4,600 area

Gold rapidly leaves behind Thursday’s inconclusive price action and advances markedly on Friday, briefly surpassing the $4,600 mark per troy ounce to hit three-month peaks. Meanwhile, the precious metal’s solid performance comes despite marginal gains in the buck coupled with another day of rising US Treasury yields across the curve.

Crypto Today: Bitcoin, Ethereum, XRP bulls accelerate rally amid rising ETF inflows

The cryptocurrency market remains bullish on Friday, led by Bitcoin’s surge above $77,000. Altcoins, including Ethereum and Ripple, mirror BTC’s positive outlook, trading near $2,400 and $1.35, respectively.

Week ahead – Fed’s Jackson Hole and Nvidia earnings to dictate markets

Kevin Warsh to make his Jackson Hole debut amid confusing messaging. But a major hawkish surprise unlikely after bond market intervention. Nvidia earnings to also determine market direction as stock rally cools.

$20 billion offered, $2 billion taken: Why Treasury doubled its buyback cap

The US Treasury moved off its own calendar on Wednesday, and that is the part worth sitting with. At 12:32 GMT, the department said it would at least double the size of liquidity support buyback operations in the 10-year to 20-year and 20-year to 30-year sectors, lifting the maximum from $2 billion per operation to at least $4 billion, effective September 9 and running to November 4.