USD/CHF continues to grind higher, with the technical picture pointing to0.8400 as the next major resistance level.
That area is significant for more than one reason. It coincides with the127.2% Fibonacci extensionof the recent recovery leg and also aligns closely with the50% Fibonacci retracementof the broader decline from theJanuary 2025 high to the January 2026 low. With two key Fibonacci levels converging in the same region,0.8400 becomes an important technical hurdle.
The move also fits the improving fundamental backdrop for the pair. Reports suggesting the Swiss National Bank could keep rates at0.00% through 2027reinforce the case for a softer Swiss franc, while higher US yields continue to underpin the US dollar.
A sustained break above0.8400would strengthen the bullish outlook and could open the door to a move towards the161.8% Fibonacci extension near 0.8500. Until then, traders should watch how price reacts at this confluence zone, where profit-taking and fresh selling interest may emerge.
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