USD/CHF Rises as US Shutdown Fears Keep Traders Alert.
USD/CHF edges higher from 0.7950 as concerns over a potential US government shutdown linger.
FUNDAMENTAL OVERVIEW:
The US Dollar pared some losses during Monday’s European session, with USD/CHF trading just above 0.7965 after dipping to a daily low of 0.7950. Upside remains limited amid looming concerns over a potential US government shutdown.
President Trump is set to meet bipartisan congressional leaders in a last-ditch effort to prevent a shutdown, though chances of an agreement appear slim. Over the weekend, CNN reported that Democrats are demanding an extension of enhanced Affordable Care Act premium subsidies and other conditions that Trump deemed “totally unreasonable” to keep the government funded through the start of the 2026 fiscal year next Wednesday.
On the monetary front, Cleveland Fed President Beth Hammack maintained a hawkish stance, emphasizing the need to sustain restrictive policy as inflation risks remain elevated, while the labor market is “broadly in balance.”
In Switzerland, key releases this week include Retail Sales on Wednesday and the August Consumer Prices Index (CPI) on Thursday. These figures, following the SNB’s decision to keep rates at 0%, may offer insights into the central bank’s near-term policy direction.
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 a Bullish Zone, while the Stochastic oscillator suggests a Positive trend.
Immediate Resistance level: 0.8030
Immediate support level: 0.7937
HOW TO TRADE USD/CHF
After a significant drop, the USD/CHF pair was strongly rejected at its low, confirming a reversal to the upside. The pair has since been exhibiting strength. It is now holding at a crucial support zone, and if this level holds, we expect the uptrend to continue.