empty
21.05.2025 06:38 PM
USD/CHF. Analysis and Forecast

This image is no longer relevant

For the third consecutive day, the USD/CHF pair continues to lose ground. The fundamental backdrop suggests that the path of least resistance remains to the downside.

The pair has been declining for three days in a row. The fundamental environment indicates that the most probable direction for the pair continues to be downward. U.S. fiscal challenges, which recently led to the unexpected downgrade of the U.S. government's sovereign credit rating last Friday, have kept selling pressure on the U.S. dollar intact. Additionally, expectations that the Federal Reserve will further cut interest rates this year—due to signs of easing inflationary pressures and weak growth prospects—are pushing the dollar even lower. At the same time, renewed demand for safe-haven assets is supporting the Swiss franc, placing additional downward pressure on the USD/CHF pair.

Recent optimism surrounding a trade truce between the U.S. and China quickly faded after the U.S. issued guidance advising companies to avoid using Huawei Ascend AI chips. In response, China accused the U.S. of abusing export control measures, stating that the Trump administration is violating the Geneva Trade Agreements. China's Ministry of Commerce also emphasized that U.S. actions toward advanced chips represent unilateral intimidation and protectionism. These developments have heightened concerns over a further deterioration in trade relations between the two countries, increasing demand for safe-haven assets.

There are no major economic data releases scheduled for Wednesday that could significantly move the market. As a result, the U.S. dollar's performance will largely depend on speeches from key FOMC members. In addition, trade-related headlines will influence overall risk sentiment and demand for safe-haven assets, creating further short-term trading opportunities in the USD/CHF pair. Nevertheless, the current fundamental backdrop continues to favor further downside for the pair.

From a technical perspective, key support lies at the psychological level of 0.8200. A break below this level could accelerate the pair's decline. Moreover, oscillators on the daily chart remain in negative territory, suggesting that the path of least resistance for the pair remains downward.

Irina Yanina,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

XAU/USD. Analysis and Forecast

Today, gold maintains a positive tone; however, bulls are acting cautiously, preferring to refrain from aggressive buying ahead of the release of the important U.S. Non-Farm Payrolls (NFP) report

Irina Yanina 15:30 2025-06-06 UTC+2

WTI. West Texas Intermediate. Traders Await NFP

Prices for West Texas Intermediate (WTI) crude oil remain in the middle of a three-day range. Prices are supported by hopes for the resumption of trade negotiations between the U.S

Irina Yanina 11:23 2025-06-06 UTC+2

ECB Meeting Results and Christine Lagarde's Press Conference

The euro responded with a significant rise following the ECB's decision to cut interest rates. But why did this happen? Let's break it down. The key reason behind the euro's

Jakub Novak 10:54 2025-06-06 UTC+2

What to Pay Attention to on June 6th? Fundamental Event Analysis for Beginners

Analysis of Macroeconomic Reports: A fairly large number of macroeconomic publications are scheduled for Friday, but most of them will not interest traders. For example, the report on industrial production

Paolo Greco 10:11 2025-06-06 UTC+2

Overview for the GBP/USD pair on June 6, 2025

The GBP/USD currency pair continued its upward movement on Thursday, trading overall calmly and without any rush. There was no news for either the British pound or the U.S. dollar

Paolo Greco 05:47 2025-06-06 UTC+2

Overview for EUR/USD on June 6, 2025

The EUR/USD currency pair continued to trade very calmly on Thursday, even when the results of the ECB meeting became known. It should be noted that there was no intrigue

Paolo Greco 05:21 2025-06-06 UTC+2

The EU Economy Will Not Suffer, According to Lagarde

Today, a meeting of the European regulator took place, where the obvious and expected decision was made to lower all three interest rates by another 25 basis points. The decision

Chin Zhao 02:56 2025-06-06 UTC+2

USD/JPY. Analysis and Forecast

During the European session on Thursday, the Japanese yen maintained stability, allowing the USD/JPY pair to hold above the key 143.00 level amid a moderate rise in the U.S. dollar

Irina Yanina 12:04 2025-06-05 UTC+2

AUD/JPY. Analysis and Forecast

Today the AUD/JPY pair is attracting new buyers. Recent Chinese data, including the private Caixin survey, showed a moderate acceleration in growth in China's services sector

Irina Yanina 11:36 2025-06-05 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair continues to decline. Fundamental factors support bearish sentiment, indicating that the path of least resistance for spot prices remains downward. Reports of a trade agreement between

Irina Yanina 11:33 2025-06-05 UTC+2
Can't speak right now?
Ask your question in the chat.
Widget callback
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.