• USD/CHF scales higher for the fifth straight day as the USD buying remains unabated on Friday.
• Rising Fed rate hike bets and persistent geopolitical uncertainties underpin the safe-haven buck.
• Bulls await sustained strength beyond the current confluence barrier before placing fresh bets.

The USD/CHF pair prolongs its weekly uptrend for the fifth consecutive day on Friday and touches over a two-week high, near the 0.7860-0.7865 region during the early European session amid a broadly firmer US Dollar (USD). Moreover, the broader setup favors bullish traders and suggests that the path of least resistance for spot prices is to the upside.

Traders ramped up their bets for an interest rate hike by the US Federal Reserve (Fed) in 2026 following the release of hotter-than-expected US inflation figures earlier this week. Moreover, the monthly Retail Sales data pointed to a still resilient consumer spending and backed the case for a more hawkish Fed. Adding to this, persistent geopolitical uncertainties amid stalled US-Iran peace talks continue to underpin the USD's reserve currency status and act as a tailwind for the USD/CHF pair.

From a technical perspective, the pair is hovering around a confluence hurdle – comprising the 38.2% Fibonacci retracement level of the March-May downfall and the 200-period Simple Moving Average (SMA). This leaves the near-term bias neutral as traders assess whether this long-term gauge can be sustainably reclaimed. Moreover, momentum indicators are mixed, with the Relative Strength Index (RSI) rising into overbought territory near 73 and hinting at stretched upside conditions.

Meanwhile, the Moving Average Convergence Divergence (MACD) is slightly positive, suggesting underlying bullish pressure but not a clear breakout yet. Hence, it will be prudent to wait for a sustained strength and acceptance beyond the current resistance zone before positioning for any further gains. The USD/CHF pair might then climb to the 38.2% Fibo. level at 0.7865, with further barriers at the 50.0% retracement near 0.7898 and the 61.8% level around 0.7931.

A sustained move above these levels would expose the 78.6% retracement at 0.7979 ahead of the swing-region high at 0.8039. On the downside, immediate support aligns at the 23.6% Fibo. retracement near 0.7824, where a break would open the way toward the structural base around 0.7758.

(The technical analysis of this story was written with the help of an AI tool.)

USD/CHF 4-hour chart