The USD/CHF rate has fallen below the key 0.8000 level, a mark last seen during the 2008 financial crisis.
This slide is driven partly by broad US dollar weakness, with the dollar index hitting a three-year low amid conflicting trade policies from the Trump administration. At the same time, geopolitical tensions have boosted demand for the Swiss franc as a safe-haven currency.
Since mid-May, the pair has been moving within a downward channel (highlighted in red). By late June, it hovered near 0.8000 (arrow), aligning with the channel’s median. This brief equilibrium gave way to renewed selling, driving the rate sharply lower (black line), potentially toward the channel’s bottom near 0.7800. Along the way, the 1.618 Fibonacci extension at 0.7875 could offer support. Earlier, 0.8055 had acted as a key support level (blue arrow).
The RSI confirms strong bearish momentum. Whether this downtrend persists will depend on broader fundamentals. According to the Wall Street Journal, the Swiss National Bank is increasingly concerned that a surging franc could hurt exporters. Any SNB intervention or statements could quickly shift sentiment and halt the decline.
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