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":87,"featured_media":47772,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[71],"tags":[],"class_list":["post-49059","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t