The US Dollar (USD) has traded higher for the second consecutive day against the Swiss Franc (CHF), with downside attempts remaining shallow amid a calm market mood. The immediate trend for USD/CHF is mildly bullish, with resistance at the 0.8075 area under pressure, as buyers continue to emerge on dips [1]. On the macroeconomic front, the Swiss National Bank reported that Foreign Currency Reserves increased to CHF 759 billion in June, up from CHF 711 billion in May, indicating a significant rise in reserves over the month [1].
The Swiss Franc remains weighed down by recent employment data, which showed the Unemployment Rate rising to a five-year high of 3.1% [1]. Later in the day, US ISM Services PMI met expectations with solid growth in activity, while the S&P Global Services PMI revealed an unexpected slowdown [1].
Technical analysis suggests USD/CHF is in a corrective phase after completing a 5-wave bullish cycle. Momentum indicators are mixed, with the Relative Strength Index (14) near 58, reflecting constructive momentum, while the MACD has slipped marginally into negative territory [1]. Bulls need to break resistance around 0.8075 to confirm the completion of the corrective phase and shift focus towards the late June and early July highs between 0.8120 and 0.8135. On the downside, a bearish reaction below 0.8045 would add pressure towards the 0.8010 area, and further weakness could target the 61.8% Fibonacci retracement just above 0.7900 [1].
This week, the Swiss Franc was the strongest against the Japanese Yen, but it declined against the US Dollar by 0.43% [1]. The heat map shows the CHF's relative performance against major currencies, highlighting its weakness versus USD, GBP, and AUD, while showing strength against JPY [1].
CONCLUSION
USD/CHF is showing a mild bullish trend, supported by rising US Dollar strength and weak Swiss employment data. The Swiss Franc's performance is mixed, with notable weakness against the USD and strength against the JPY. Market participants are watching resistance at 0.8075 for further directional cues.