An Overview of the USD/CHF Situation as of 2025.05.27

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An Overview of the USD/CHF Situation as of 2025.05.27

 

The USD/CHF currency pair has experienced a significant decline over the past three months. During this downtrend, sellers have successfully pushed the price down to its lowest level recorded thus far, reaching 0.80387.
 

Observing long-term timeframes, such as the monthly and weekly charts, the price is currently situated near one of the lowest levels in the history of this pair. Consequently, it is considered to be in a relatively oversold condition.

The US Dollar is currently exhibiting attempts to strengthen. Furthermore, the technical analysis of the chart suggests the potential for a further correction, implying a possible, albeit potentially weak, upward movement for this currency pair.
 

Due to its oversold status, coupled with a negative divergence observed in the Relative Strength Index (RSI) indicator on shorter timeframes, such as the 4-hour chart, the price has demonstrated an inability to surpass the key level of 0.81925. This has resulted in the formation of a consolidated price floor.

Should the price manage to establish itself above this crucial key level, it would provide increased optimism for risk-tolerant buyers. In such a scenario, the price could experience upward momentum, targeting the resistance level at 0.83300.
 

Conversely, in the event of a bearish movement leading to a breach below the 0.81925 support level, the likelihood of an upward trend would diminish. The price would then have the potential to decline towards the support levels of 0.81200, and in a more pronounced downward move, potentially reach as low as 0.80500.
 

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