Select Language

USD/CHF Price Forecast: Slips below 0.8250 as bullish harami hits at rebound potential

Breaking news

USD/CHF Price Forecast: Slips below 0.8250 as bullish harami hits at rebound potential

  • X
  • facebook
  • LINE
  • RSS

  • X
  • facebook
  • LINE
  • RSS
New update 2025.05.06 05:57
USD/CHF Price Forecast: Slips below 0.8250 as bullish harami hits at rebound potential

update 2025.05.06 05:57

  • USD/CHF forms bullish harami near 0.8200 support, signaling possible upside correction.
  • Resistance levels to watch: 0.8250, 0.8300, and May highs at 0.8317 and 0.8332.
  • A daily close below 0.8200 may open the door to YTD lows below 0.8100 and 0.8038.

The USD/CHF extended its losses for the second straight day, and it is down over 0.46%, trading at 0.8221. Although the pair is in a downtrend, failure to clear the previous support seen at 0.8204 it is forming a 'bullish harami' two-candle chart pattern, suggesting that the major could test the May 2 high of 0.8317 key resistance level.

USD/CHF Price Forecast: Technical outlook

Given the backdrop, the USD/CHF's first resistance would be 0.8250 ahead of  0.8300. If surpassed, 0.8317 and the May 1 high at 0.8332 would follow.

On the other hand, sellers achieving a daily close below 0.8200 could push the USD/CHF to a new year-to-date (YTD) low below 0.8100 and also under the April 21 daily low of 0.8038.

USD/CHF Price Chart - Daily

Swiss Franc FAQs

The Swiss Franc (CHF) is Switzerland's official currency. It is among the top ten most traded currencies globally, reaching volumes that well exceed the size of the Swiss economy. Its value is determined by the broad market sentiment, the country's economic health or action taken by the Swiss National Bank (SNB), among other factors. Between 2011 and 2015, the Swiss Franc was pegged to the Euro (EUR). The peg was abruptly removed, resulting in a more than 20% increase in the Franc's value, causing a turmoil in markets. Even though the peg isn't in force anymore, CHF fortunes tend to be highly correlated with the Euro ones due to the high dependency of the Swiss economy on the neighboring Eurozone.

The Swiss Franc (CHF) is considered a safe-haven asset, or a currency that investors tend to buy in times of market stress. This is due to the perceived status of Switzerland in the world: a stable economy, a strong export sector, big central bank reserves or a longstanding political stance towards neutrality in global conflicts make the country's currency a good choice for investors fleeing from risks. Turbulent times are likely to strengthen CHF value against other currencies that are seen as more risky to invest in.

The Swiss National Bank (SNB) meets four times a year - once every quarter, less than other major central banks - to decide on monetary policy. The bank aims for an annual inflation rate of less than 2%. When inflation is above target or forecasted to be above target in the foreseeable future, the bank will attempt to tame price growth by raising its policy rate. Higher interest rates are generally positive for the Swiss Franc (CHF) as they lead to higher yields, making the country a more attractive place for investors. On the contrary, lower interest rates tend to weaken CHF.

Macroeconomic data releases in Switzerland are key to assessing the state of the economy and can impact the Swiss Franc's (CHF) valuation. The Swiss economy is broadly stable, but any sudden change in economic growth, inflation, current account or the central bank's currency reserves have the potential to trigger moves in CHF. Generally, high economic growth, low unemployment and high confidence are good for CHF. Conversely, if economic data points to weakening momentum, CHF is likely to depreciate.

As a small and open economy, Switzerland is heavily dependent on the health of the neighboring Eurozone economies. The broader European Union is Switzerland's main economic partner and a key political ally, so macroeconomic and monetary policy stability in the Eurozone is essential for Switzerland and, thus, for the Swiss Franc (CHF). With such dependency, some models suggest that the correlation between the fortunes of the Euro (EUR) and the CHF is more than 90%, or close to perfect.

 


Date

Created

 : 2025.05.06

Update

Last updated

 : 2025.05.06

Related articles


Show more

FXStreet

Financial media

arrow
FXStreet

FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.

Was this article helpful?

We hope you find this article useful. Any comments or suggestions will be greatly appreciated.  
We are also looking for writers with extensive experience in forex and crypto to join us.

please contact us at [email protected].

Thank you for your feedback.
Thank you for your feedback.

Most viewed

WTI rises above $57.50, continues recovery despite concerns over rising global supply

West Texas Intermediate (WTI) crude Oil price continues to recover during Asian trading on Tuesday, hovering around $57.60 per barrel after a nearly 2% decline on Monday. However, gains were capped by concerns over rising global supply following an OPEC+ decision to accelerate output increases.
New
update2025.05.06 10:28

PBOC sets USD/CNY reference rate at 7.2008 vs. 7.2014 previous

On Tuesday, the People's Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.2008 as compared to last Wednesday's fix of 7.2014 and 7.2518 Reuters estimate.
New
update2025.05.06 10:15

AUD/USD trades around 0.6450 after pulling back from five-month highs

AUD/USD is retreating from a five-month high of 0.6493 reached on Monday, slipping to around 0.6450 during the Asian session on Tuesday. The decline comes as the US Dollar (USD) strengthens ahead of the Federal Reserve's (Fed) upcoming monetary policy decision on Wednesday.
New
update2025.05.06 09:55

EUR/USD grinds sideways as markets pivot to face Fed rate call

EUR/USD churned chart paper near the familiar 1.1300 handle to kick off a fresh trading week. The Fiber has been stuck in a choppy consolidation phase as Euro traders struggle to kick off a new push in either direction.
New
update2025.05.06 08:54

Mexican Peso slips ahead of Fed decision, inflation data in focus

The Mexican Peso (MXN) began the week with losses of around 0.58% against the US Dollar (USD) ahead of a crucial week with the Federal Reserve (Fed) preparing to host its monetary policy meeting on May 7 and the announcement of Mexican inflation figures.
New
update2025.05.06 08:42

GBP/USD settles ahead of central bank double header

GBP/USD snapped a near-term losing streak, pumping the breaks and holding steady near the 1.3300 handle to kick off a fresh trading week.
New
update2025.05.06 07:04

AUD/NZD Price Analysis: Aussie drifts near 1.0800 as bullish structure faces mixed signals

The AUD/NZD pair hovered around the 1.0800 mark on Monday after the European session, slipping slightly but staying within a narrow mid-range as the market heads into Asia.
New
update2025.05.06 07:00

GBP/JPY Price Analysis: Pound holds steady near 191.00 amid mixed technical landscape

The GBP/JPY pair showed marginal movement on Monday, holding near the 191.00 zone following the European session. Price action remained flat within a narrow range, reflecting uncertainty in direction as momentum indicators deliver conflicting signals.
New
update2025.05.06 06:30

EUR/JPY Price Analysis: Euro pulls back near 163.00 but bullish trend remains intact

The EUR/JPY pair slipped lower on Monday, falling toward the 163.00 zone as the session closed and ahead of the Asian open. Despite the day's decline, the broader setup remains constructive, with the pair still holding above critical trendline supports.
New
update2025.05.06 06:00

USD/CHF Price Forecast: Slips below 0.8250 as bullish harami hits at rebound potential

The USD/CHF extended its losses for the second straight day, and it is down over 0.46%, trading at 0.8221.
New
update2025.05.06 05:56

Disclaimer:arw

All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.

The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.

  • Facebook
  • Twitter
  • LINE

Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy

I agree
share
Share
Cancel