USD/CHF fell on Thursday as the Swiss Franc strengthened after a slightly weaker US jobless claims report. The pair traded near 0.7700, down 0.22%. The US Dollar also failed to extend gains after Wednesday’s Nonfarm Payrolls report.
The technical picture still leans bearish. The Relative Strength Index (RSI) supports ongoing downside momentum. Price previously dropped to around 0.7600 and bounced toward 0.7800, but then set a lower high.
Technical Levels And Near Term Bias
After topping out, USD/CHF slid to 0.7627 and then turned higher. Over the last three sessions, it has traded in a tight range between 0.7600 and 0.7700. A break below 0.7600 would put 0.7550 in focus, followed by 0.7500.
If the pair moves above 0.7700, the next resistance is the 20-day Simple Moving Average near 0.7780. A break above 0.7780 would bring 0.7800 into view, then 0.7861, and then 0.7900.
By late 2025, USD/CHF was in a clear downtrend, driven by softer US data. Many expected a break below 0.7600, and momentum indicators pointed lower. That bearish tone continued into the start of the new year.
But the first weeks of 2026 changed the story. January US CPI stayed hot at 3.2%, which surprised markets. The latest non-farm payrolls also showed strong hiring, with 250,000 jobs added. This mix suggests the Federal Reserve may delay rate cuts, widening the policy gap with the Swiss National Bank.
Options Strategies For Continued Upside
As a result, USD/CHF has turned higher and broken above earlier resistance levels such as 0.7780 and 0.7861. The current price action near 0.8050 suggests the bearish momentum from late last year has faded. It also shows how quickly shifting fundamentals can override a technical setup.
With USD strength returning, traders may look at strategies that benefit if the pair keeps moving up in the weeks ahead. One approach is selling cash-secured puts near former resistance, such as 0.7900, to collect premium. That level may now act as support on pullbacks.
For a more direct bullish trade with limited risk, buying call options that expire in March or April may be appealing. Implied volatility has also risen from about 6% in December 2025 to around 8.5% more recently, which signals the market expects bigger swings. A bull call spread can help reduce the cost of higher premiums while still keeping upside exposure.
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