USDCHF technicals
After two days of sharp declines, the USDCHF plunged to new lows not seen since 2011, breaking below the April low at 0.80388 but only reaching an extreme low of 0.8034 on Wednesday. The sell-off was exacerbated by dovish signals from Fed Chair Powell, who acknowledged that a July rate cut is possible—fueling dollar weakness across the board. Lower yields added further downward pressure, culminating in yesterday’s failed break of the key multi-decade support.
That failure proved crucial. When today’s low successfully held at the April trough (0.80388), it attracted bargain hunters and profit-takers, turning sellers into buyers. The bounce accelerated as the price moved back above the June 13 low at 0.8054, which now serves as close support. The rebound has shifted short-term momentum to the upside, but staying above the old June low would certainly give the buyers more confidence – as would reaching and surpassing upside targets.
Looking ahead, the next upside targets for the pair include 0.8088, followed by the 100-hour moving average at 0.8130, and the 200-hour moving average at 0.81377. These levels will be important resistance zones, particularly if buyers aim to shift the trend more meaningfully in their favor.
Key technical levels:
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Support: 0.8054 (June 13 low), then 0.80388 (April low), followed by 0.8034 (2025 low)
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Resistance: 0.8088, 0.8130 (100-hour MA), 0.81377 (200-hour MA)
The technical bounce off a historically significant low and the failure to extend below 2011 levels give buyers a tactical edge—at least for now.
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