The US dollar–Swiss franc pair declined for the eighth consecutive session, recording a level of 0.7790 yesterday, its lowest level since March 12, 2026. The pair is down by about 2% since the beginning of the year and is currently trading near the 0.7800 level.
The outperformance of the Swiss franc against the US dollar is mainly attributed to its traditional status as a safe-haven currency during periods of turmoil, particularly amid the uncertainty surrounding geopolitical tensions in the Middle East. This comes as negotiations continue between the United States and Iran, with optimism about the possibility of reaching an agreement before the ceasefire expires.
Recent Swiss economic data also indicate resilience in the economy. Retail sales increased by 0.9% year-on-year, higher than the previous reading of -0.6%. Meanwhile, the Purchasing Managers’ Index rose to 53.3 points, exceeding both expectations (47.2) and the previous reading (47.4).
On the other hand, the US dollar is facing selling pressure against most foreign currencies. The US Dollar Index fell for the eighth consecutive session, reaching 99.97 yesterday, its lowest level since March 2, 2026. The index is down by about 0.20% since the beginning of the year, after previously outperforming most major currencies as it had been acting as the primary safe-haven asset during the ongoing war in the Middle East.
Markets are now awaiting the release of Switzerland’s monthly Producer Price Index on Thursday, with expectations pointing to an increase of 0.2%, higher than the previous reading of -0.3%.
Technical factors:
The Relative Strength Index (RSI) is currently at 40, close to the neutral zone, reflecting continued negative momentum for the USD/CHF pair.
In addition, a bearish crossover has appeared between the MACD line and the signal line, reinforcing the likelihood of continued negative momentum for the pair.
Support and resistance levels:
Support levels: If the pivot level of 0.7814 is broken, the pair may target 0.7786, 0.7762, and 0.7734.
Resistance levels: If the pair moves above the pivot level, it may target 0.7838, 0.7866, and 0.7890.
Please note that this analysis is provided for informational purposes only and should not be considered as investment advice. All trading involves risk.
