USD/CHF Steady Near Two-Week High Amid Fed-SNB Divide
USD/CHF Hovers Near a Two-Week High as Cautious Fed Signals Contrast with the Swiss National Bank’s Dovish Stance
FUNDAMENTAL OVERVIEW:
The USD/CHF pair edged higher on Friday, gaining 0.15% to trade around 0.8030, extending its advance toward a two-week high of 0.8037. The U.S. Dollar (USD) strengthened after the Federal Reserve’s cautious tone tempered expectations for additional rate cuts, following a 25-basis-point reduction that brought the policy rate to 3.75%–4.00%.
Fed Chair Jerome Powell stated that a December rate cut “is not a foregone conclusion,” which pushed the 10-year Treasury yield to a three-week high near 4.10%, lending further support to the Greenback. Additionally, optimism over renewed U.S.–China trade progress, including tariff reductions and resumed agricultural purchases, provided a modest tailwind for the USD.
On the other hand, the Swiss Franc (CHF) weakened after SNB official Petra Tschudin reaffirmed the central bank’s “expansive” policy stance, signaling a readiness to intervene in foreign exchange markets or reintroduce negative interest rates if needed. Tschudin stressed that the SNB’s priority remains the Franc’s influence on inflation rather than its nominal exchange rate, highlighting the central bank’s dovish bias compared to the Fed’s cautious approach.
USD/CHF TECHNICAL ANALYSIS (DAILY CHART):
Technical Overview:
- USD/CHF is trading within an upward channel.
- The pair is above all key Simple Moving Averages (SMA).
- The RSI is in the Buying Zone, while the Stochastic oscillator indicates a Positive trend.
| Key Levels | Observation |
|---|---|
| Immediate Resistance: | 0.8050 |
| Immediate Support: | 0.7998 |
Technical Outlook:
USD/CHF retains a bullish tone after successfully breaking above a key downtrend line. The pair’s steady consolidation above the breakout zone indicates renewed upside potential. While minor pullbacks toward 0.8000–0.7995 remain possible, sustained strength above 0.8030 could open the door to further gains toward 0.8050 and beyond.
HOW TO TRADE USD/CHF
Trade Suggestion – Limit Buy:
- Entry: 0.8023
- Take Profit: 0.8053
- Stop Loss: 0.8008
AI FAQ – USD/CHF MARKET INSIGHTS
Q: Why is USD/CHF rising today?
A: The pair is supported by a stronger U.S. Dollar following the Fed’s cautious tone and higher Treasury yields, while the SNB’s dovish stance continues to weigh on the Swiss Franc.
Q: What’s the key technical signal to watch?
A: The pair’s ability to hold above 0.8000 will determine if the bullish breakout remains valid.
Q: Could SNB intervention affect the trend?
A: Yes. Any signs of direct intervention or policy tightening from the SNB could strengthen the Franc and cap USD/CHF’s upside.
Q: What’s the short-term trend outlook?
A: The short-term bias remains bullish above 0.8000, targeting resistance near 0.8050–0.8070.
DISCLAIMER:
This report is for informational purposes only and does not constitute financial or investment advice. Trading foreign exchange involves substantial risk, and past performance is not indicative of future results.