USD/CHF weakens amid renewed US-Iran negotiations

USD/CHF falls as improving risk appetite pressures the US Dollar.
Optimism rises after reports suggest Washington and Tehran are advancing toward a potential agreement.
FOMC minutes reinforce the Fed's higher-for-longer stance.

Agustin Wazne FXStreet

The USD/CHF drops toward the 0.7875 region on Wednesday as the US Dollar (USD) loses footing amid improving market sentiment.

Market sentiment improved after reports indicated that negotiations between the US and Tehran are progressing. Headlines stated that US President Donald Trump said that the US is in the “final stages” of talks with Iran, according to a White House pool report. Speaking to reporters at Joint Base Andrews, Trump offered a characteristically mixed message about the ongoing diplomatic efforts. “We’ll see what happens,” Trump said, adding that a deal will be reached.

The more optimistic tone reduced safe-haven demand for the USD, crippling USD/CHF's ability to maintain a bullish bias despite lingering geopolitical uncertainty. The Federal Reserve (Fed) Minutes reinforced the market’s growing higher-for-longer narrative. Policymakers appear increasingly uncomfortable with lingering inflation risks, especially as higher energy prices and geopolitical uncertainty threaten to delay disinflation.

Short-term technical analysis:

On the four-hour chart, USD/CHF trades at 0.7877, holding a modest bullish bias as it consolidates above both the 20-period Simple Moving Average (SMA) near 0.7872 and the 100-period SMA around 0.7832. The clustering of nearby supports under price suggests dips remain supported for now, while the Relative Strength Index (RSI) easing back toward the mid-50s hints at fading but still constructive upside momentum rather than outright exhaustion.

On the downside, initial support emerges at 0.7876, reinforced by the prior horizontal floor at 0.7858 and then the 20-period SMA close to 0.7872, with the deeper 100-period SMA around 0.7832 acting as a more significant cushion if selling pressure accelerates. On the topside, immediate resistance is seen at the 0.7895 horizontal barrier, with a break above exposing the next cap near 0.7907, where bulls would need to clear supply to extend the recovery leg.

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

Author

Agustin Wazne

FXStreet

Agustin Wazne joined FXStreet as a Junior News Editor, focusing on Commodities and covering Majors.

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