USD/CHF Price Outlook: US Dollar seeks momentum above 0.7955

USD/CHF Finds Support as Upward Momentum Eases

The US Dollar stabilized at 0.7955 after pulling back from near 0.8020 against the Swiss Franc on Monday. While the currency pair continues to follow the upward trajectory established since late December, technical signals indicate that bullish momentum is fading.

Earlier downward pressure, triggered by heightened tensions between the US government and the Federal Reserve, appears to have diminished. On Tuesday, investors are largely adopting a wait-and-see approach, anticipating the upcoming US Consumer Price Index (CPI) release before making new moves on the US Dollar.

Technical Overview: USD/CHF Forms Expanding Wedge Pattern

Currently, USD/CHF is trading at 0.7977, having rebounded from its session low of 0.7955. The price chart reveals an expanding wedge formation, which often signals heightened market volatility and can precede a downward reversal. Technical indicators suggest a shift toward neutral or bearish sentiment: the MACD has dipped just below the zero mark, while the RSI is hovering close to 50, indicating indecision among traders.

• Key support: The primary support zone lies at the intersection of the trendline and Monday’s low, near 0.7955. Should this level break, the next area to watch is between 0.7900 and 0.7905, corresponding to the lows from January 2 and 6.
• Resistance levels: On the upside, former support at 0.7985 (the low from January 9) is currently acting as resistance, blocking the path to Monday’s peak at 0.8020 and the upper boundary of the wedge at 0.8035.

(This technical analysis was prepared with assistance from an AI-powered tool.)

Momentum is weakening.