Title: USD/CHF Price Action Shows Signs of Profit-Taking Amid Bullish Continuation Potential
Source: Economies.com. Original analysis by Economies.com team. Expanded and revised with additional insights.
Overview
The USD/CHF currency pair has recently exhibited signs of short-term pullback after reaching notable highs earlier in the week. This retracement is seen as part of a profit-taking phase rather than an indication of a trend reversal. The pair maintains strong bullish momentum supported by fundamental and technical factors, setting the stage for potential continuation to higher levels. In this expanded analysis, we explore the technical backdrop, fundamental drivers, and broader market context influencing the USD/CHF forecast.
Current Market Conditions
– As of early November 2025, USD/CHF has been trading in the upper range of recent months, reflecting dollar strength against the Swiss franc.
– After touching new resistance levels, the pair began to pull back modestly, suggesting that traders are securing profits from earlier long positions.
– The prevailing uptrend remains intact, with key support levels not yet compromised.
– Price action is unfolding in a technically structured manner, with temporary dips providing potential buying opportunities for trend-following traders.
Technical Analysis
Support and Resistance Levels
– Near-Term Support: 0.9070. This level has offered a significant floor in recent sessions and is a key zone for bulls to hold.
– Deeper Support: 0.9025. A break below this could signal a more prolonged correction phase.
– Immediate Resistance: 0.9150. Price rejected this barrier recently, triggering the current pullback.
– Medium-Term Resistance: 0.9200. Breaching this level would confirm the continuation of the broader uptrend.
Chart Indicators
– Moving Averages: The 50-day and 100-day Exponential Moving Averages (EMA) are both sloping upward, indicating sustained bullish sentiment.
– 50-day EMA: Acting as dynamic support around 0.8985
– 100-day EMA: Further below at 0.8850, reinforcing longer-term bullish structure
– RSI (Relative Strength Index): Currently near 60, indicating positive momentum but with room to move higher before signaling overbought levels.
– MACD (Moving Average Convergence Divergence): Exhibiting a positive histogram with the signal line trending higher, supporting continued upward bias.
Technical Outlook
– The slight retreat from 0.9150 is interpreting as a natural market reaction for price consolidation.
– As long as the pair remains above 0.9070, the bullish path toward breaking the 0.9200 ceiling remains viable.
– A daily close above 0.9150 will likely act as a catalyst for additional gains targeting the 0.9300 area.
Fundamental Factors Supporting USD/CHF
1. US Dollar Strength
– Strong Economic Data: Recent US macroeconomic indicators, including GDP expansion, resilient consumer spending, and low unemployment, have bolstered demand for the US dollar.
– Fed Monetary Policy: The Federal Reserve continues to hold a hawkish tone, keeping interest rates elevated. Markets expect the Fed to remain cautious in cutting rates, potentially waiting until mid-2026.
– U.S. yields remain attractive for investors, offering positive real returns amid continued inflation concerns.
2. Swiss Franc Weakness
– Swiss National Bank (SNB) Stance: The SNB has taken a more dovish approach in 2025, with recent signals hinting at possible interest rate reductions in early 2026 to stimulate inflation.
– Weak Inflation: Switzerland has experienced persistent low inflation, below the SNB’s target, undermining support for the franc.
– Lower demand for safe-haven assets like the franc due to improvements in global risk sentiment has added downward pressure on CHF.
3. Risk Sentiment and Global Factors
– Improved Market Risk Appetite: Global equity markets have been inching toward year-to-date highs, reducing demand for safe-haven
Read more on USD/CAD trading.