The US Dollar continued to trade with a firm tone against the Swiss Franc on Friday, supported by improving global risk sentiment and a growing conviction that the US economy ended 2025 on a notably stronger footing than many had anticipated. However, despite the broader bullish bias, the greenback struggled to gain sustained traction above the psychologically important 0.8020 level, highlighting a degree of near-term hesitation among buyers.
USD/CHF has remained bid since carving out a base in late December, extending a corrective recovery that reflects both domestic US strength and fading demand for traditional safe-haven currencies. The Swiss Franc, typically supported during periods of geopolitical stress and financial uncertainty, has softened as investors increasingly rotate back into higher-yielding and growth-linked assets.
At the core of the dollar’s resilience is a string of robust US economic data that has reinforced the perception of a meaningful rebound in activity during the final quarter of 2025. November Producer Price Index (PPI) figures surprised to the upside, pointing to persistent pricing pressures at the wholesale level, while Retail Sales data underscored the continued resilience of US consumers despite elevated interest rates.
Together, these releases have strengthened the argument that the US economy has absorbed restrictive monetary conditions better than expected, limiting the urgency for the Federal Reserve to ease policy in the near term. Instead, markets have increasingly priced in a prolonged pause in rates, with policymakers afforded the luxury of waiting for clearer evidence that inflation is decisively converging toward target.
From a currency perspective, this backdrop remains constructive for the dollar, particularly against low-yielding counterparts such as the Swiss Franc. While rate cuts remain on the horizon at some point in 2026, the absence of immediate dovish pressure from the Fed continues to underpin USD demand.
Beyond macroeconomics, shifting geopolitical dynamics have also played a role in shaping price action. Safe-haven assets, including the Swiss Franc, have come under pressure as tensions in the Middle East appear to have eased modestly.
Comments from US President Donald Trump suggesting a reduction in repression against demonstrators in Iran helped calm market fears of a near-term military escalation involving the Islamic Republic. While geopolitical risks remain structurally elevated, the reduction in immediate tail-risk scenarios has dampened demand for defensive currencies, further weighing on the CHF.
This improvement in sentiment has encouraged a broader “risk-on” bias, allowing USD/CHF to maintain its upward trajectory even as momentum begins to show signs of fatigue near key resistance.
Technical Analysis
From a technical standpoint, USD/CHF remains constructive, though not without warning signs. On an intraday basis, the pair has managed to preserve recent gains after breaking above the 0.8015 resistance area, confirming the dominance of a short-term bullish corrective trend. Price action continues to track above the rising trendline and remains supported by the 50-period Exponential Moving Average (EMA50), which is providing dynamic support.However, momentum indicators are beginning to flash caution. Relative Strength Index (RSI) readings have retreated from overbought territory, suggesting that upside momentum is moderating and that the market may require a fresh catalyst to extend gains meaningfully beyond current levels.
On the four-hour (H4) chart, USD/CHF is actively retesting the broader resistance zone around 0.8000–0.8022, an area that now represents a critical battleground between bulls and bears. The latest price action shows a localized bullish rebound following the formation of a short-term base, indicating that buyers are attempting to flip former resistance into support.
The moving average cluster, particularly the convergence of the 50- and 200-period Simple Moving Averages (SMA50/200), provides a clear technical line in the sand. As long as price holds above this zone, the broader bullish continuation scenario remains valid.
A confirmed and sustained hold above the 0.8000 region would significantly increase the probability of a continuation toward the next upside target near 0.8109, a level that aligns with previous structural resistance. Conversely, a decisive break back below 0.79645 would invalidate the bullish setup and signal that the recent rally was merely corrective in nature.
TRADE RECOMMENDATION
BUY USDCHF
ENTRY PRICE: 0.8025
STOP LOSS: 0.79645
TAKE PROFIT: 0.81093