USD/CHF Pauses Winning Streak as US Dollar's Post-Fed Rally Fades
The USD/CHF pair has paused its six-day winning streak as the US Dollar's post-Fed rally slows down. The Swiss Franc has regained some ground, but the US Dollar remains above its major daily Simple Moving Averages (SMAs), keeping the technical bias bullish.
The Federal Reserve raised its benchmark rate by 25 basis points to 3.75%-4.00%, with 16 of 18 policymakers expecting at least one more quarter-point increase before the end of the year. This widening interest rate gap between the US and Switzerland makes the Swiss Franc vulnerable, but it has also become increasingly popular as a funding currency for carry trades.
UOB Group strategists note that the recent upswing in USD/CHF has exceeded their prior expectations, with the Dollar breaking above 0.8205 and reaching 0.8265. However, they caution that momentum remains strong but it's too early to tell whether it's sufficient for the Dollar to break above 0.8300.
The Relative Strength Index (RSI) is near overbought territory at 68, while the Moving Average Convergence Divergence (MACD) remains positive. The pair trades around 0.8245, hovering near levels last seen in May 2025.