USD/CHF has rebounded from two-and-a-half-week lows near 0.8000 and is pushing toward the 0.8070 area, helped by broad US Dollar strength. A daily close above 0.8065 would confirm a bullish Morning Star pattern, though momentum readings stay mixed.
The US Dollar is clawing back ground against the Swiss Franc on Monday, and the pair's rebound from two-and-a-half-week lows near 0.8000 has extended beyond 0.8050, aiming for the 0.8070 area. Fresh frictions in the Middle East are dampening appetite for risk in an otherwise calm session.
Geopolitics and Swiss data steer the Franc
Iranian authorities reiterated their willingness to control the Strait of Hormuz and collect fees from vessels crossing the waterway, casting a shadow over the fragile ceasefire as the US rejects that option. Fresh hostilities in Lebanon and reciprocal threats between Iran and Israel add pressure on the peace process.
In Switzerland, an unexpected rise in the Unemployment Rate hit a nearly five-year high at 3.1% in June, up from 3% in May, adding weight to the Swissie. Later in the US session, the ISM Services PMI is expected to show a moderate slowdown while staying at levels consistent with healthy activity, and Federal Reserve Governor Christopher Waller is due to meet the press.
A Morning Star hangs on the 0.8065 close
USD/CHF trades at 0.8054, with price action suggesting an A-B-C corrective reversal following a five-wave bullish cycle. A daily close above the June 26 and 30 lows in the 0.8065 area would confirm a Morning Star formation, a bullish sign that the bearish correction might have concluded.
Momentum indicators are mixed. The Relative Strength Index (14) sits around 57, hinting at constructive but not overextended momentum, while the MACD turning slightly negative suggests upside may be slowing rather than reversing.
A confirmed break above 0.8065 shifts focus toward the 0.8120 to 0.8140 band ahead of the August 2025 high at 0.8170. On the downside, a bearish reaction below the 0.8000 area would expose support near 0.7915, where mid-June lows meet the 200-day SMA, and the 61.8% Fibonacci retracement of the May-June rally at the 0.7900 area.
Source: FXStreet
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