The U.S. dollar’s latest pullback has traders zeroing in on a key support zone on USD/CHF.
Will buyers step in and defend this area, or are we looking at more downside from here?
Here’s what we’re seeing on the 4-hour time frame:
USD/CHF 4-hour Forex Chart by TradingView
In case you missed it, the U.S. Supreme Court ruled against President Trump’s IEEPA-based global tariffs, stirring fresh uncertainty around the U.S. economic outlook and taking some wind out of the dollar’s sails.
This backdrop could give the Swiss franc, a safe-haven currency and one of the dollar’s counterparts, a bit of an edge if the dollar pullback sticks around.
Still, dollar bears may not have a clear runway just yet. A major technical support zone is right below, and that could make it tough for sellers to really press their advantage.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
USD/CHF has been printing higher lows since late January, but the pair recently backed off the .7770 zone and is now hovering around .7700, putting a key support area back in the spotlight.
As you can see, the .7700 psychological handle lines up with S1 Pivot Point at .7684 and a rising trend line that has been holding for weeks.
If we see steady green candlesticks and sustained trading back above .7700, the setup could start to look like another bounce off support, opening the door for a move toward the .7800 resistance zone and possibly even fresh February highs.
But if the dollar’s pullback gains traction and USD/CHF slips below the ascending triangle support, then USD/CHF could be headed lower. In this case, a clean break lower could send the pair toward S2 at .7619 and maybe even the .7600 psychological level.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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