What Happened
The US Dollar extended its winning run against the Swiss Franc (CHF) for a fourth consecutive session on Friday, with USD/CHF trading around 0.7850, up 0.15% on the day. The move was driven by resilient US economic data and a renewed shift away from risk assets globally. Swiss deflation concerns are also weighing on the Franc, removing pressure on the Swiss National Bank to keep rates elevated.
Key Levels
- Support 1: 0.7800 — round-number floor and recent consolidation zone
- Support 2: 0.7750 — prior swing low and longer-term demand area
- Resistance 1: 0.7880 — intraday high and near-term ceiling
- Resistance 2: 0.7920 — key technical barrier from earlier in May
Technical Picture
USD/CHF is trending higher in the short term, making higher lows over the past four sessions. The pair is trading above its 20-day moving average, which signals short-term bullish momentum. A stronger US Dollar typically puts pressure on gold (XAU/USD), since both the Franc and gold are considered safe-haven assets — when the USD rallies, both tend to soften.
What Traders Are Watching
For ASX traders, the key read-through is on gold and risk sentiment. If USD/CHF breaks above 0.7920, it would signal broad USD strength that could drag gold below the $3,200/oz support level — a headwind for ASX gold miners. Conversely, a failure at 0.7880 and a pullback toward 0.7800 would suggest the USD rally is losing steam, potentially supporting gold and broader risk appetite heading into next week.
Also watch US data releases — any signs of economic softening could quickly reverse this USD move.
Bias
Bearish CHF / Bullish USD — short term. The combination of strong US data and Swiss deflation risk keeps pressure on the Franc. However, with USD/CHF up four days in a row, a short-term pullback is possible before any further gains.
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