USD/CHF Price Forecast: Pulls below 0.8100 but remains bullish
- USD/CHF preserves constructive structure despite post-inflation pullback below 0.8100.
- RSI remains bullish above 50, keeping upside bias intact.
- Close above 0.8100 exposes 0.8152 and 0.8171 resistance.
The USD/CHF tumbles by 0.70% on Tuesday, trading at 0.8091, as the latest US inflation report prompted market participants to pare hawkish bets that the Federal Reserve might cut the Fed funds rate this year.
USD/CHF Price Forecast: Technical outlook
Price action indicates the uptrend remains intact. The market structure of higher highs and higher lows remains intact, despite the USD/CHF dip below the 0.8100 mark, following the release of macroeconomic data.
Momentum favours further upside, as the Relative Strength Index (RSI) is bullish above its 50-neutral level.
That said, if USD/CHF registers a daily close above 0.8100, a potential move towards the high of the day (HOD) at 0.8152 is on the cards. If its cleared, the August 1, 2025, daily high at 0.8171 is up next, before traders challenge the 0.8200 mark. Above lies the psychological 0.8250 and 0.8300.
Downwards, the first support is the low of the day (LOD) at 0.8060. A breach of the latter will expose the July 10 swing low of 0.8030, ahead of 0.8000. On further weakness, the next support is the July 2 daily low of 0.8010.
USD/CHF Price Chart — Daily
Swiss Franc FAQs
What key factors drive the Swiss Franc?
The Swiss Franc (CHF) is Switzerland’s official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country’s economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc’s value, causing a turmoil in markets. Even though the peg isn’t in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.
Why is the Swiss Franc considered a safe-haven currency?
The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country’s currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.
How do decisions of the Swiss National Bank impact the Swiss Franc?
The Swiss National Bank (SNB) meets four times a year – once every quarter, less than other major central banks – to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.
How does economic data influence the value of the Swiss Franc?
Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc’s (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank’s currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.
How does the Eurozone monetary policy affect the Swiss Franc?
As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland’s main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.