USD/CHF Breaks 0.8100 Ahead of Trade Talks & US CPI
USD/CHF climbs past 0.8100 as focus shifts to trade talks and U.S. CPI.
FUNDAMENTAL OVERVIEW:
The Swiss Franc weakened on Monday as moderate risk appetite and broad U.S. Dollar strength drove currency flows. Optimism over a potential U.S.–China trade deal, coupled with caution ahead of Tuesday’s U.S. CPI release, kept traders from placing large USD short positions.
With no major data on Monday, markets remain hopeful Washington and Beijing will extend their trade truce and avoid triple-digit tariffs that could reignite global trade uncertainty. The U.S. is pushing for greater Chinese imports of American agricultural and tech goods to narrow its trade deficit, while China has voiced security concerns over Nvidia’s H20 chip. The deadline for an agreement is next Tuesday.
Attention now turns to Tuesday’s U.S. inflation report, with July’s headline CPI expected to rise to 2.9% year-on-year from 2.8%, and core CPI seen at 3% versus 2.9% previously. The data will be closely watched for monetary policy implications, potentially moving the USD.
Meanwhile, the Franc remains under pressure after President Trump imposed a steep 39% tariff on Swiss exports, a significant blow to Switzerland’s export-reliant economy and a headwind for CHF demand.
USD/CHF TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/CHF is trading within an up channel.
USD/CHF is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 0.8111
Immediate support level: 0.8062
HOW TO TRADE USD/CHF
The USD/CHF experienced a substantial decline but has since sharply rebounded, breaking through a key resistance area. It’s now at an immediate resistance zone. A successful breach and hold above this level would suggest the uptrend will persist.