The pair fell below key moving averages after a US Treasury bond buyback announcement triggered a sharp decline in the dollar.
The USD/CHF plunged nearly 2% to 0.7979 on Wednesday after the US Treasury announced a bond buyback, sending the dollar lower and Treasury yields diving. The pair had peaked at 0.8128 earlier in the session before the selloff accelerated.
Technically, the pair remains upward-biased after bottoming at 0.7604 in February 2026 but has now breached critical support levels, including the 50-day SMA at 0.8084. It is testing the 100-day SMA at 0.7975, with the RSI dropping from 51 to 36.48, signaling growing bearish momentum.
A break below the 100-day SMA could target the 200-day SMA at 0.7932, followed by 0.7900. Conversely, buyers must reclaim 0.8000 to challenge resistance at 0.8042 and the 50-day SMA at 0.8084.