The US dollar edged lower against the Swiss franc on Tuesday, with USD\/CHF trading at 0.7946 as markets weighed cautious optimism over a potential US-Iran agreement against positioning ahead of the Federal Reserve\u2019s decision. President Donald Trump said at the G7 that talks with Tehran had moved to a \u201csecond stage\u201d, while reports referenced a framework involving the release of $24bn in frozen Iranian assets in exchange for toll-free navigation through Hormuz. Attention then turns to Wednesday, when the Fed concludes its first policy meeting under Chair Kevin Warsh, with the interest-rate decision and updated economic projections due.<\/p>\n
Price action kept a mildly bearish near-term tone, with a possible Head & Shoulders formation in focus. The RSI has drifted back towards the mid-40s, while the MACD remains marginally negative. Traders are watching support between 0.7900 and 0.7930, including 0.7930 (Monday\u2019s low) alongside the neckline near 0.7915, with a measured objective around 0.7845; below that, the June 4 and 5 lows are cited near 0.6870. On the upside, resistance sits at 0.7960\u20130.7970, and a break higher would shift attention to 0.8013.<\/p>\n
We are seeing the US Dollar soften against the Swiss Franc, with sellers testing a crucial support zone between 0.8900 and 0.8920. Easing trade tensions between the US and the European Union are currently limiting the dollar’s appeal as a safe-haven asset. However, widespread caution ahead of this week’s Federal Reserve meeting is keeping the pair from falling further.<\/p>\n
The Fed is dealing with a mixed economic picture, as last month\u2019s non-farm payrolls added a less-than-expected 150,000 jobs, a sharp decline from the 240,000 average seen in the first quarter of 2026. While the latest CPI report showed annual inflation cooling to 2.8%, it remains above the Fed’s 2% target. We will be watching for any dovish shift in the Fed’s economic projections this Wednesday.<\/p>\n
From a technical perspective, the USD\/CHF chart appears to be forming a Head and Shoulders pattern, which often signals a trend reversal to the downside. Our focus is on the neckline of this pattern, located around the 0.8915 support level. A clean break below this area could trigger a more significant sell-off toward the May lows near 0.8850.<\/p>\n
For the coming weeks, we believe that buying put options with a strike price around 0.8900 is a sensible strategy. This position allows traders to profit from a potential drop below the key support level following the Fed meeting. Implied volatility is likely to rise heading into the announcement, so establishing positions soon could be beneficial.<\/p>\n
On the other hand, we must respect the immediate resistance area around 0.8980. A decisive move above this level would negate the bearish outlook and invalidate the Head and Shoulders pattern. In that event, we would pivot to buying call options, targeting a retest of the early June high at 0.9030.<\/p>\n","protected":false},"excerpt":{"rendered":"
USD\/CHF dips as US-Iran optimism and Fed decision loom; bearish head-and-shoulders targets key support breakdown.<\/p>\n","protected":false},"author":103,"featured_media":16970,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[99,9,107,10,57],"class_list":["post-55197","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates","tag-central-bank","tag-dollar","tag-dovish","tag-forex","tag-franc"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/55197","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/users\/103"}],"replies":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/comments?post=55197"}],"version-history":[{"count":0,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/posts\/55197\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media\/16970"}],"wp:attachment":[{"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/media?parent=55197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/categories?post=55197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.vtmarkets.com\/en-ca\/wp-json\/wp\/v2\/tags?post=55197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}