Can USD/CHF Hold Rebound Toward 0.8000 This Week?
USD/CHF rebounds to 0.7960 as the US Dollar trims earlier losses.
FUNDAMENTAL OVERVIEW:
The US Dollar pared some losses in Wednesday’s European session as the initial impact of the government shutdown began to ease. USD/CHF rebounded from intraday lows near 0.7930 to 0.7960, though it remains well below last week’s highs above 0.8000.
The Greenback has faced broad selling pressure this week amid anticipation of the US government shutdown, which officially began Wednesday after funding disagreements between Democrats and Republicans—marking the first closure in seven years and raising the risk of delays to Friday’s key Nonfarm Payrolls release.
On the data front, US JOLTS job openings showed a modest uptick in August, but a weaker hiring rate underscored concern of a cooling labour market, reinforcing expectations of further Fed rate cuts later this month.
Meanwhile, in Switzerland, SNB President Martin Schlegel signalled that inflation could rise slightly in the coming quarters, while the economy shows moderate growth. This outlook supports the central bank’s stance to keep rates steady, lending some resilience to the Swiss Franc.
USD/CHF TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/CHF is trading within a down channel.
USD/CHF is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Bullish Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 0.8013
Immediate support level: 0.7924
HOW TO TRADE USD/CHF
USD/CHF, after a steep drop, found support and staged a rebound, regaining strength. The pair broke above resistance but later pulled back to retest the support zone, where buying interest emerged again. As long as USD/CHF holds above this level, further upside momentum remains likely.