USD/CHF Holds Above 0.8000 as Swiss Data Misses Forecasts.
USD/CHF holds steady just above the 0.8000 mark following the release of Swiss economic data.
FUNDAMENTAL OVERVIEW:
The US Dollar has found support just above the 0.8000 psychological threshold against the Swiss Franc, following a reversal from Wednesday’s 0.8075 peak. At the time of writing, the pair trades around 0.8015, still reflecting a near-term bearish bias despite soft Swiss data released Thursday. Switzerland’s second-quarter GDP slowed to an annual pace of 1.2%, down from 1.8% in the prior quarter and missing expectations of 1.4%.
USD/CHF was unable to sustain gains beyond 0.8075 for a third consecutive attempt this week, retreating on Wednesday after dovish remarks from New York Fed President John Williams weighed on the Dollar. Williams emphasized that every Fed meeting remains “live,” keeping the door open for a potential September rate cut.
For now, the Dollar continues to trade within a range as markets turn their focus to Friday’s PCE Price Index data for further direction. Consensus points to stable inflation, and if confirmed, it could reinforce expectations of a September cut, adding further downside pressure on the Greenback.
USD/CHF TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/CHF is trading within a down channel.
USD/CHF is moving below all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Neutral Zone, while the Stochastic oscillator suggests Negative trend.
Immediate Resistance level: 0.8038
Immediate support level: 0.7979
HOW TO TRADE USD/CHF
USD/CHF, after a sharp decline, found support and attracted buying interest, triggering a strong reversal to the upside and breaking a key level. However, the pair failed to sustain those gains and has since shown weakness, reversing lower and breaking below key support. It is now retesting the broken zone, and if it faces further rejection from the upside, the decline could extend further.
