On Friday, the Swiss franc (CHF) was trading below 0.7870 against the US dollar (USD). Over the past couple of days, it has dropped from the 0.7900 mark, yet it seems to have found some stability within the weekly trading range. Investors appear to be hesitant, especially given the mixed signals coming from the Middle East.
It looks like a peace agreement between the United States and Iran is currently stuck due to differing views on the nuclear issue and control over the Strait of Hormuz. Nevertheless, there remains a glimmer of hope for a negotiated resolution, particularly as Iranian officials tweak the latest proposal from the U.S. On Thursday, Secretary of State Marco Rubio mentioned “good signs” in the peace talks, which contributed to some cautious optimism in the markets.
Technical analysis: Bullish momentum is beginning to fade
As for USD/CHF, it is now at 0.7869 after failing to maintain values above 0.7900 earlier in the week, reflecting a quieter trading sentiment. The Relative Strength Index (RSI) hovering around 50 points to a sideways movement, while the Moving Average Convergence Divergence (MACD) remains slightly negative. This indicates that bullish momentum might be waning.
On the upside, a breakthrough above the resistance zone between 0.7920 and 0.7930—corresponding to the highs from early April—could open the way towards key psychological levels around 0.8000, with April’s highs at 0.8015 also in play.
On the downside, if prices drop below the May 18 low of 0.7840, the broken trend line near the 0.7825 level may lend fresh support to bearish sentiments, potentially leading the price to retest the May low around 0.7765.
