News
7x24
Quotes
Economic Calendar
Video
Data
- Names
- Latest
- Prev.
USD/CHF Breaks Key Support as Bearish Momentum Accelerates
Economic
Summary:
The US Dollar plunges amid risk-off sentiment, disappointing US inflation data, and renewed skepticism over Trump’s trade agenda, pushing USD/CHF toward multi-year lows.
Sell
TradingUSDCHF
EXP
0.81400
Entry Price
0.80000
TP
0.82500
SL
0.81287 +0.00288 +0.36%
0
Point
Flat
0.80000
TP
CLOSING
0.81400
Entry Price
0.82500
SL
The US Dollar is under intense pressure across the board, as a combination of lackluster US economic data and growing disillusionment with President Donald Trump’s trade policy stokes risk aversion, prompting investors to seek refuge in safer assets like the Swiss Franc.
As of Thursday’s European trading session, the greenback has taken a heavy beating against most major currencies, with USD/CHF down sharply by 0.8%, dropping from Tuesday’s high near 0.8250 to intraday lows around 0.8120 — just a stone’s throw from multi-year support at 0.8040. The renewed selloff underscores deepening market doubts over the sustainability of the so-called "America First" economic narrative, especially as trade risks begin to collide with a weakening macroeconomic backdrop.
A shaky truce in the US-China trade war, which was supposed to lend stability, has instead done little to calm investor nerves. The agreement — which still awaits official ratification by China’s President Xi Jinping — mostly reiterates prior commitments reached in Geneva last month. Tariffs remain in place at punitive levels, and no concrete roadmap has been laid out to ease broader trade restrictions.
Markets were hoping for a breakthrough, something substantial enough to spur confidence. Instead, what they got was a recycled version of the previous deal, further diluted by uncertainty. In a move that only added fuel to the fire, President Trump announced he would be issuing formal letters to all major trading partners, outlining stricter tariff demands that could take effect as early as June 9. This aggressive posture has reignited fears of a renewed trade war escalation, sending a chill through global equity markets and strengthening the bid for traditional safe havens.
Compounding the pressure on the greenback are signs of faltering domestic inflation. Wednesday’s release of softer-than-expected consumer price index (CPI) data suggested that pricing pressures remain subdued, leading many investors to believe that the Federal Reserve may need to resume its rate-cutting cycle sooner rather than later.
The data have increased expectations of a rate cut as early as September, and traders are now eyeing Thursday’s US Producer Price Index (PPI) for further confirmation. If producer prices also show weakness, the narrative for additional monetary policy easing from the Fed will likely gain even more traction, accelerating the dollar’s slide.
In contrast to the embattled dollar, the Swiss Franc has been one of the primary beneficiaries of this renewed wave of global uncertainty. Traditionally considered a safe haven, the CHF tends to outperform in times of market stress, and current conditions have provided the perfect setup for such a move. With investor sentiment rapidly deteriorating, capital has rotated out of risk-sensitive assets and into currencies like the CHF and JPY, pushing USD/CHF toward its lowest levels since the early 2020s.
Technical Analysis
From a technical perspective, USD/CHF remains under considerable bearish pressure. The pair broke decisively below the 0.8185 support level, opening the path toward the next significant floor near the 0.8000 area — a level not seen in several years. The sustained move below the 50-period exponential moving average (EMA50) adds to the negative bias, with the moving average acting as a dynamic resistance barrier.
Moreover, the Relative Strength Index (RSI) shows persistent bearish momentum, even though it is now hovering in oversold territory. The fact that the RSI has not triggered any bullish divergence suggests that the downside still has room to extend, particularly if upcoming data and trade headlines continue to favor a risk-off posture.
The short-term trend is clearly tilted to the downside, and unless a significant shift in macro sentiment or monetary policy expectations occurs, the pair could continue to trend lower in the sessions ahead.
TRADE RECOMMENDATION
SELL USDCHF
ENTRY PRICE: 0.8140
STOP LOSS: 0.8250
TAKE PROFIT: 0.8000
Risk Warnings and Investment Disclaimers
You understand and acknowledge that there is a high degree of risk involved in trading with strategies. Following any strategies or investment methodologies is the potential for loss. The content on the site is being provided by our contributors and analysts for information purposes only. You alone are solely responsible for determining whether any trading assets, or securities, or strategy, or any other product is suitable for you based on your investment objectives and financial situation.
Quick Access to 7x24
Quick Access to More Editor-selected Real-time News
Exclusive video for free
FastBull project team is dedicated to create exclusive videos
Real-time Quotes
View more faster market quotes
More comprehensive macro data and economic indicators
Members have access to entire historical data, guests can only view the last 4 years
Member-only Database
Comprehensive forex, commodity, and equity market data
English
English
العربية
繁體中文
简体中文
Bahasa Melayu
Bahasa Indonesia
ภาษาไทย
Tiếng Việt
Copyright © 2025 FastBull Ltd
Home News Columns 7x24 Economic Calendar Quotes Video Data WarehouseAnalysis AI Signal Pro User Agreement Privacy Policy About Us
Risk Disclosure
The risk of loss in trading financial assets such as stocks, FX, commodities, futures, bonds, ETFs or crypto can be substantial. You may sustain a total loss of the funds that you deposit with your broker. Therefore, you should carefully consider whether such trading is suitable for you in light of your circumstances and financial resources.
No consideration to invest should be made without thoroughly conduct your own due diligence, or consult with your financial advisors. Our web content might not suit you, since we have not known your financial condition and investment needs. It is possible that our financial information might have latency or contains inaccuracy, so you should be fully responsible for any of your transactions and investment decisions. The company will not be responsible for your capital lost.
Without getting the permission from the website, you are not allow to copy the website graphics, texts, or trade marks. Intellectual property rights in the content or data incorporated into this website belongs to its providers and exchange merchants.