|

USD/CHF Price Forecast: Sinks to a two-week low near 0.8200 amid safe-haven demand

  • The Franc surges nearly 1% as Trump’s tariff threats trigger risk aversion and deepen the US Dollar’s slide.
  • USD/CHF breaks below 0.8250, nearing key support at May’s low of 0.8184.
  • Bearish flag breakdown points to a possible test of the 2025 low at 0.8038.
  • Traders pile into Swiss Franc as US protectionism and fiscal risks spook markets.

USD/CHF continues to weaken as the downtrend extends past 0.8250, as the pair loses almost 1%. Investors seeking safety bought the Swiss Franc (CHF) after US President Donald Trump threatened to enact tariffs of 50% on the European Union (EU) and 25% on Apple’s iPhone manufactured overseas. At the time of writing, the pair trades at 0.8203, at new two-week lows.

USD/CHF Price Forecast: Technical outlook

As of writing, the USD/CHF pair is tilted to the downside after clearing the bottom of a ‘bearish flag’ pattern, which indicates that the pair might test the current year-to-date (YTD) low of 0.8038.

Momentum favors further downside, as USD/CHF has achieved a successive series of lower highs and lower lows, with the Relative Strength Index (RSI) remaining in bearish territory.

On its way towards the YTD low, USD/CHF must drop below 0.8200. A breach of the latter will expose May’s low of 0.8184, followed by 0.8100 and the 0.8050 mark.

On the upside, buyers need to clear the May 22 peak of 0.8396, ahead of the 0.8350 and 0.8400.

USD/CHF Price Chart – Daily 

Swiss Franc PRICE This week

The table below shows the percentage change of Swiss Franc (CHF) against listed major currencies this week. Swiss Franc was the strongest against the US Dollar.

USDEURGBPJPYCADAUDNZDCHF
USD-1.58%-1.84%-1.90%-1.78%-1.42%-1.72%-1.86%
EUR1.58%-0.29%-0.28%-0.14%0.29%-0.08%-0.28%
GBP1.84%0.29%-0.27%0.15%0.58%0.21%0.00%
JPY1.90%0.28%0.27%0.13%0.65%0.38%0.09%
CAD1.78%0.14%-0.15%-0.13%0.37%0.06%-0.14%
AUD1.42%-0.29%-0.58%-0.65%-0.37%-0.37%-0.56%
NZD1.72%0.08%-0.21%-0.38%-0.06%0.37%-0.20%
CHF1.86%0.28%-0.01%-0.09%0.14%0.56%0.20%

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 Swiss Franc from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent CHF (base)/USD (quote).

Author

Christian Borjon Valencia

Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.

More from Christian Borjon Valencia
Share:

Editor's Picks

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks
Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.
Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.