The FOMC meeting minutes is up today!
Think you’ve got your U.S. dollar setups locked and loaded?
USD/CHF may have a potential resistance zone worth watching on the 4-hour time frame:
USD/CHF: 4-hour
USD/CHF 4-hour Forex Chart Faster with TradingView
The U.S. dollar was Tuesday’s strongest major currency, supported by rising U.S. bond yields and the lack of progress on the U.S.-Iran war, which kept traders leaning toward a more hawkish FOMC outlook even with Kevin Warsh joining the mix.
With no top-tier Swiss report scheduled on tap, the Swiss franc could give traders a cleaner way to trade the dollar around the upcoming FOMC meeting minutes.
USD/CHF is staging an impressive rally from its .7750 May lows and is now inching toward the .7900 psychological level.Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the U.S. dollar and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
That area lines up with the R1 Pivot Point at .7904, a previous area of interest, and the top of a descending channel that has been in play since last month.
Bearish candlesticks and sustained trading below .7900 could draw enough selling pressure to drag USD/CHF back toward the .7850 mid-channel area near the Pivot Point, if not the .7700 zone closer to channel support.
But if this week’s catalysts keep boosting the U.S. dollar or weighing on the franc, USD/CHF could break above the .7900 resistance zone and aim for higher inflection points like the .8000 psychological level or the 2026 highs near .8040.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
This USD/CHF setup is partly a story about the Swiss franc, and if you’re not familiar with what drives it, our lesson on Switzerland has you covered. Premium members can read our lesson:
Reading this helps you understand SNB policy and how it shapes the franc, the key Swiss economic indicators worth watching, and how USD/CHF tends to behave around major macro events.
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