After making fresh 2025 lows, USD/CHF looks set to retest previous areas of interest.
Will the pair encounter bearish pressure around these levels?
We’re taking a closer look at the 4-hour time frame:
USD/CHF 4-hour Forex Chart by TradingView
In case you missed it, the Fed just pulled the trigger on its first rate cut of 2025. However, Chairman Powell’s press conference kept traders on their toes, while a wide split in the dot plot and a hint that future moves will be decided one meeting at a time.
Meanwhile, the Swiss franc came out a winner, riding dollar weakness both ahead of the event and during the bearish swing that followed the decision.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CHF, which has been in an observable downtrend since early August, recently touched fresh 2025 lows after falling below the .7920 previous support zone.
With the Fed’s cautious stance giving the dollar a bit of a bounce, we’re watching for bearish setups near old areas of interest.
The .7920 to .7940 pocket lines up with Fib retracements and prior support, while the .7960 to .8000 zone matches the Pivot and R1 levels, the 100 SMA, and a trend line that has capped rallies since August.
Bearish candles around those spots could offer entries for another leg down to fresh lows.
But if the dollar’s strength carries USD/CHF above the trend line, and it sticks north of .8000, the pair has room to test .8100 or even .8150.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment!
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
