• USD/CHF remains on the defensive, below 0.7050, with 0.7030 in the bears' focus.
• Hopes of a lasting peace in the Middle East are keeping the US Dollar's upside attempts limited.
• The pair approaches the neckline of a Head & Shoulders pattern.

The US Dollar (USD) posts marginal losses against the Swiss Franc (CHF) on Tuesday, with bears aiming for a key support area between 0.7900 and 0.7930. Moderate optimism about a US-Iran peace deal is keeping the USD’s rally subdued, while investors’ caution ahead of the Federal Reserve’s meeting is limiting dips for now.

US President Trump affirmed at the G7 summit that the deal with Tehran is going to a “second stage” and that Iran agreed never to have a nuclear weapon. Meanwhile, the UK newspaper Guardian, citing the Israeli Haaretz, affirms that the deal includes the release of $24 billion of frozen Iranian assets in exchange for allowing toll-free navigation in Hormuz.

Investors will have some distraction from the Middle East conflict on Wednesday, as the Federal Reserve (Fed) concludes its first monetary policy meeting under the leadership of Chairman Kevin Warsh. Warsh is expected to adopt a more dovish stance than his predecessor, Jerome Powell, and traders will have the interest rate and economic projection releases to contrast those views.

Technical Analysis: A bearish Head & Shoulders is in progress

USD/CHF trades at 0.7946, keeping a mildly bearish near-term bias with recent price action showing a potential Head & Shoulders (H&S) pattern. The Relative Strength Index (RSI) has eased back toward the mid‑40s while the Moving Average Convergence Divergence (MACD) remains marginally negative, suggesting that upside attempts could continue to struggle unless momentum improves.

Bears are focusing on the 0.7930 area (Monday's low), the upper boundary of a previous resistance area, now turned support. Halfway through that area lies the neckline of the H&S pattern, now at 0.7915, while the lower boundary would be at the 0.7900 area (May 19, 20, 21, and 28 highs). Below there, the June 4 and 5 lows are around 0.6870. The H&S's measured target is at the June 2 low, near 0.7845

On the topside, immediate resistance is seen at the area between 0.7960 and 0.7970, Monday and Friday's lows, respectively. A confirmation above those levels negates this view and brings the June 11 high, at 0.8013, into play.

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