The USDCHF showed some ups and downs today. The latest move saw it drop as sellers took charge after hitting resistance at the 38.2% retracement level from July around 0.8071 and the broken 100-hour moving average at 0.8052.

Video Explanation

Despite the price swings, the current technical indicators favor sellers. The key question is whether they can maintain their control and hit the next target. Check out our video on how to manage risk, set your trading bias, and establish targets during unpredictable price movements. For regular updates on trading and investment news, visit investingLive.com. Sellers currently dominate USD/CHF after the price faced resistance at crucial levels. The pair rejected the 0.8071 mark, which corresponds with a significant retracement from the July trading range, and also failed to recover past the 100-hour moving average. This behavior has tipped the immediate trading bias downwards.

Technical And Fundamental Analysis

The dollar’s recent weakness is confirmed by new economic data. Last week’s inflation report for the U.S. from July 2025 showed that the Consumer Price Index dropped to 2.9%, making it less likely that the Federal Reserve will raise interest rates again this year. This situation is a strong reason for ongoing dollar weakness against the Swiss franc. On the other hand, the Swiss National Bank (SNB) has maintained a hawkish stance, continuously emphasizing its commitment to price stability throughout 2025. This difference in policies, with a hesitant Fed and a proactive SNB, supports the strength of the franc. The market is reacting to this disparity, strengthening the case for a bearish trend in the USD/CHF pair. For traders focused on derivatives, this environment is ideal for strategies designed to profit from declines. Buying put options with strike prices below the psychological level of 0.8000 could be an effective way to gain downside exposure while limiting risk. The resistance area around 0.8071 is a crucial boundary—if the price breaks above this, the bearish outlook would be invalidated. It’s also important to consider the broader trend over the past few years. This volatile price action may just be a pause before a further drop. A similar pattern of consolidation occurred before a significant sell-off in late 2023, which pushed the pair below 0.8500. A decisive break below the July 2025 lows could indicate the beginning of another downward move. Create your live VT Markets account and start trading now.

here to set up a live account on VT Markets now