The USD/CHF currency pair experienced a sharp decline of nearly 2% on Wednesday, following an announcement from the US Treasury regarding a bond buyback program. This news triggered a significant selloff in the US Dollar, which was accompanied by a notable drop in US Treasury yields. As a result, the USD/CHF pair fell to 0.7979 after previously reaching a high of 0.8128 earlier in the session [1].
From a technical standpoint, the USD/CHF had been exhibiting an upward bias since bottoming at 0.7604 in February 2026, rallying to a yearly high above 0.8200 prior to the US Treasury's announcement. The subsequent selloff pushed the pair below key support levels, including the 50-day Simple Moving Average (SMA) at 0.8084, and down to test the 100-day SMA at 0.7975 [1]. The Relative Strength Index (RSI) also dropped from around 51 to 36.48, indicating a shift in momentum towards bearish sentiment and suggesting that sellers are gaining control [1].
Looking ahead, the technical outlook suggests that a bearish continuation could occur if USD/CHF breaks below the 100-day SMA and then the 200-day SMA at 0.7932, with the next support level at 0.7900. Conversely, for buyers to regain control, the pair would need to reclaim the 0.8000 level and then challenge the March 31 high of 0.8042, followed by the 50-day SMA at 0.8084 and the August 13 high of 0.8147 [1].
The Swiss Franc is widely regarded as a safe-haven currency, often strengthening during periods of market stress due to Switzerland's stable economy and political neutrality. The current market reaction underscores the CHF's safe-haven appeal amid heightened volatility in the US Dollar [1].
CONCLUSION
The US Treasury's bond buyback announcement led to a sharp selloff in the US Dollar, causing USD/CHF to tumble nearly 2% and break key technical support levels. Market sentiment has turned bearish for the pair, with further downside possible if support levels fail to hold. The Swiss Franc's safe-haven status continues to attract investors during periods of uncertainty.