|

USD/CHF Price Forecast: Slumps below 0.7800 after clash on 50-day SMA

  • USD/CHF falls 0.25% as rejection at 50-day SMA near 0.7819 halts rebound.
  • A break above 0.7878 would expose the 100-day SMA at 0.7909.
  • A drop below 0.7777 could open the door to 0.7700 and 0.7660 support.

USD/CHF retreats on Wednesday, down by 0.25% as the pair failed to post a daily close above the 50-day Simple Moving Average (SMA) of 0.7819. The Greenback trimmed some of its Wednesday’s gains on risk aversion. The pair trades below the 0.7800 figure, poised to remain glued to 'the figure' waiting for a fresh catalyst.

USD/CHF Price Forecast: Technical outlook

Price action suggests the USD/CHF downtrend remains in place, unless buyers push prices higher. The successive series of lower highs and lower lows is intact, but a challenge to the Tuesday daily high of 0.7878 would open the door to test immediate resistance at the 100-day SMA at 0.7909.

The Relative Strength Index (RSI) is bullish, but it has turned downwards, aiming for the RSI’s neutral level. This and USD/CHF’s second daily close below the 50-day SMA clears the path for a pullback.

On the downside, if the pair hurdles the Tuesday low of 0.7784, sellers could opt to challenge the 0.7700 figure. On further weakness, a key support trendline emerges at around 0.7660-0.7680.

USD/CHF Price Chart – Daily

USD/CHF Daily Chart

US Dollar Price This week

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

USDEURGBPJPYCADAUDNZDCHF
USD1.20%0.49%0.71%0.15%-0.31%0.28%1.60%
EUR-1.20%-0.72%-0.51%-1.04%-1.49%-0.88%0.39%
GBP-0.49%0.72%0.00%-0.33%-0.79%-0.18%1.10%
JPY-0.71%0.51%0.00%-0.50%-0.96%-0.27%0.92%
CAD-0.15%1.04%0.33%0.50%-0.50%0.22%1.43%
AUD0.31%1.49%0.79%0.96%0.50%0.61%1.91%
NZD-0.28%0.88%0.18%0.27%-0.22%-0.61%1.29%
CHF-1.60%-0.39%-1.10%-0.92%-1.43%-1.91%-1.29%

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

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

CLARITY Act approval odds sink fast ahead of Congressional hearing
The United States (US) House Financial Services Committee’s Subcommittee on Digital Assets, Financial Technology, and Artificial Intelligence (AI) is holding a hearing titled “Building the Future of Finance: How the CLARITY Act Unlocks Innovation” on Friday.
Week ahead – Could technology earnings revive equities as geopolitical risks linger?

Oil prices rise, but the dollar posts losses as Middle East tensions persist. US earnings, the ECB and UK newsflow dominate next week’s agenda. US equity markets face a pivotal test as focus shifts to technology earnings.

-0.4%: Why the biggest CPI drop since 2020 couldn't buy back a single cut

The June CPI fell 0.4% on the month, the largest one-month decline since April 2020, dragging the annual rate to 3.5% from May's 4.2% and snapping a three-month acceleration streak. Core prices went nowhere, flat on the month and down to 2.6% YoY, both under consensus.