USD/CHF has risen for a sixth straight session and is trading near its highest level since May 2025, helped by diverging central bank policy between the Federal Reserve and the Swiss National Bank. The pair is now testing resistance near 0.83485-0.83580, with 0.8400 the next target if buyers can hold above that zone.
USD/CHF is trading up 0.12% on the day, putting the pair on track for its sixth consecutive daily gain. The rally has carried the price from a recent low of 0.81822 to yesterday's high of 0.83580, a gain of approximately 2.15%, or 176 pips.
Policy divergence supports the dollar
The move follows diverging paths from Switzerland and the United States. The Swiss National Bank left its policy rate unchanged at its latest meeting, while the Federal Reserve raised rates by 25 basis points and signaled that another rate hike could come before year-end.
Markets are pricing in around a 40% chance of an October hike and a near-100% chance of a hike by year-end, a backdrop that supports the dollar against the franc. However, a supportive fundamental story does not remove the potential for a technical correction, particularly after six days of gains.
Buyers test resistance twice
Yesterday's rally reached 0.83580, briefly taking the price above the May 29, 2025 high at 0.83485, but buyers could not sustain the break and the pair closed back below that level. Today, the price pushed above 0.83485 to an intraday high of 0.83540 before backing off again.
For buyers, the requirement is straightforward: get above 0.83485 and stay above. A move through today's high at 0.83540 and yesterday's high at 0.83580 would open the door toward 0.8400, a level that also marks the 50% midpoint of the decline from the February 2025 high to the January 2026 low.
What would give sellers more control
If resistance continues to hold, the first downside test comes at the rising 100-hour moving average, now at 0.83134. A sustained break below that level would give sellers more control and increase the potential for a deeper correction toward the rising 200-hour moving average at 0.82699.
Buyers still hold the trend, but they need to turn 0.83485 from resistance into support to keep the run going.
Source: Investinglive RSS Breaking News Feed
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