Geopolitical tensions and Fed hawkish bets support the USD, though technical resistance keeps the pair under pressure near 0.7800.
The USD/CHF pair rebounded from Friday’s lows near 0.7760 but remains capped below 0.7800 in early European trading. Renewed geopolitical risks in the Strait of Hormuz and persistent US inflation concerns bolstered demand for the USD, reinforcing its reserve currency status.
Technical indicators signal a bearish bias, with the pair trading below its 200-day Simple Moving Average (SMA) at 0.7926. Momentum gauges, including the RSI at 42 and a negative MACD, suggest downside pressure persists without clear signs of a reversal.
Despite intraday gains, the broader downtrend remains intact, with sellers likely to emerge near key resistance levels. The 200-day SMA remains a critical barrier for any sustained upside.