Trend traders huddle up!
USD/CHF looks ready to return to an established uptrend after pulling back to a key inflection zone.
Take a closer look at what we’re seeing on the 4-hour time frame!
USD/CHF: 4-hour
USD/CHF 4-hour Forex Chart Faster with TradingView
In case you missed it, the Fed voted 9 to 3 to keep policy unchanged, with Hammack, Kashkari, and Logan favoring a 25 basis point rate hike. The less-hawkish-than-expected outcome, combined with Fed Chair Warsh’s commitment to avoid forward guidance, likely helped pull the U.S. dollar lower against major counterparts like the Swiss franc.
Meanwhile, reports earlier this week suggested the Swiss National Bank could keep rates at zero through the end of 2027. That outlook may be limiting demand for the franc, even as shaky risk sentiment offers some support.
USD/CHF has been trending higher since May 2025, but the rally recently ran into resistance near the .8200 psychological handle before pulling back toward .8150.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!
A bounce from this area wouldn’t surprise technical traders. The .8150 zone lines up with the rising trendline, the 100 SMA, the Pivot Point, and the 50% Fibonacci retracement of the late July upswing.
If buyers defend that support cluster, USD/CHF could revisit .8200 and possibly make another run at fresh swing highs.
However, if yesterday’s selloff picks up steam and price starts holding below the trendline and the 100 and 200 SMAs, the .8050 and .8000 former areas of interest could come back into play.
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 built around a zone where four technical factors converge, and if you haven’t studied how traders evaluate that kind of overlap, it can be hard to know why one level carries more weight than another. Premium members can read our lesson:
📖 Confluence: Stacking the Odds in Your Favor
Reading this helps you understand how to score a price action setup, why multiple factors pointing at the same level changes the quality of a trade, and how to apply that framework before entering.
And if you’re not a Premium subscriber yet, now’s a good time to sign up.
With Babypips Premium, you get full access to School of Pipsology lessons that help you understand not just where price might react, but how many factors need to align at a level before the setup is actually worth acting on.
