Headline: USD/CHF Extends Decline as Trade-Talk Optimism Lifts the Swiss Franc
The US dollar weakened against the Swiss franc, with USD/CHF sliding to fresh intraday lows as headlines suggested Switzerland is nearing a tariff agreement with the United States. The risk-on Swiss narrative combined with key technical breaks added momentum to the move, drawing increased attention from forex traders.
USD/CHF fell below the 200-hour moving average near 0.8056 and pierced the 38.2% Fibonacci retracement at 0.80475, printing a session low around 0.80435. Maintaining price action beneath the 200-hour MA keeps the short-term bias negative, with sellers firmly in control. Momentum signals now point toward the next support at the 50% retracement level around 0.8024, followed by the psychologically important 0.8000 handle.
The latest leg lower came after indications that Switzerland and the US are close to a tariff deal that could reduce the rate from 39% to 15%, although potential sticking points remain. The prospect of eased trade terms supported the franc and pressured the pair. Should USD/CHF reclaim and hold above the 200-hour MA, downward pressure may fade; otherwise, the path of least resistance favors further tests of lower support zones.
Key Points: – USD/CHF drops to new session lows, hitting roughly 0.80435. – Breaks below 200-hour moving average at 0.8056 and 38.2% Fib at 0.80475. – Bearish targets: 50% retracement near 0.8024 and the 0.8000 psychological level. – Swiss-US tariff talks reportedly near a deal, potentially cutting rates to 15% from 39%. – Staying under the 200-hour MA keeps sellers in control; a close back above would ease downside pressure.
