USD/CHF fell 0.20% during the North American session on Tuesday. It traded near 0.7733 and tested support at the 20-day Simple Moving Average (SMA) at 0.7723. The US Dollar rose against most major currencies, but not against the Swiss Franc.
The pair recently topped out near 0.7766 after climbing back above the 20-day SMA three days ago. The Relative Strength Index (RSI) suggests the bullish momentum is easing.
Key Levels And Momentum
If USD/CHF stays above the 20-day SMA and breaks above 0.7750, it may move up to test 0.7800. The next resistance levels are the 50-day SMA at 0.7845 and the 100-day SMA at 0.7911.
If the pair drops below the 20-day SMA and below 0.7700, the next key level is the February 10 swing low at 0.7629.
USD/CHF is now sitting on an important support zone around the 20-day SMA near 0.7723. With the broader US Dollar still strong, this area could become a major turning point in the weeks ahead. The pair’s weak response to positive US data may signal underlying strength in the Swiss Franc.
If you expect the US economy to keep outperforming, one possible approach is to consider call options with a strike above 0.7750. This view is supported by strong January US jobs data and inflation readings in late 2025 that kept the Federal Reserve leaning hawkish. If the pair breaks higher, 0.7800 would be the first upside target.
Options Strategies And Scenario Planning
On the other hand, if Swiss inflation stays controlled, the Swiss National Bank may have little reason to push the currency lower. Recent figures show Swiss CPI steady at 1.9%, which is within the central bank’s target range. In this case, a break below 0.7700 could lead traders to consider put options, with the February low at 0.7629 as a target.
A similar chart pattern appeared in Q3 2025, when the pair moved sideways for several weeks before dropping sharply. That history suggests volatility could rise quickly if support at 0.7723 breaks. Traders expecting a volatility surge may consider a straddle or strangle options strategy.
The softer RSI momentum also suggests that any near-term rebound could struggle. A more cautious approach is to wait for a daily close clearly above 0.7766 or clearly below 0.7700 before taking a larger position. This helps reduce the risk of trading a false breakout.
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