USD/CHF Forecast: Looks to extend gains above 0.7900 on firm USD | FXStreet

The USD/CHF pair attracts some follow-through buyers for the second straight day and retests the three-week top during the early European session on Wednesday. Spot prices now look to build on over one-week-old uptrend further beyond the 0.7900 mark amid a bullish US Dollar (USD).

Persistent geopolitical uncertainties, along with hawkish US Federal Reserve (Fed) expectations amid inflation fears, helps the USD Index (DXY), which tracks the Greenback against a basket of currencies, in preserving its recent gains to a six-week high. Bulls, however, seem hesitant and opt to wait for the release of FOMC Minutes before positioning for any further appreciating move.

From a technical perspective, the Moving Average Convergence Divergence (MACD) histogram has turned modestly positive and backs the constructive outlook. However, spot prices location below the 200-day Exponential Moving Average (EMA) and a mid-range Relative Strength Index (RSI) around 58 suggest only tentative upside momentum within a broader capped environment.

Hence, any subsequent move up beyond the 50% Fibonacci retracement level of the March-May fall is likely to confront near a dense overhead cluster that starts with the 0.7915-0.7920 horizontal zone and the 61.8% Fibo. at 0.7936. This is followed by the 200-day EMA near 0.7956 and then the 78.6% retracement at 0.7984, with the swing high of 0.8045 acting as a stronger barrier if gains extend.

On the downside, initial support sits at the 50.0% retracement around 0.7902, ahead of the 38.2% retracement at 0.7868, with further floors at the 23.6% Fibo. near 0.7827 and the 0.7759 anchor, where a deeper pullback could seek a more solid base.

(The technical analysis of this story was written with the help of an AI tool.)

USD/CHF daily chart