USDCHFIdea: USDCHF SHORT IDEA FULL BREAKDO… Trade Setup Link Above ^^^^ Sell limit order has been triggered in line with the swing trade setup. Price tapped into a major resistance zone with overextended momentum, offering a high-risk-reward opportunity.
USDCHF Tariffs is already priced in by central banks and institutions before news is released. Commercial and retail is less than 1% of the volume in the forex market.
USD/CHF is flashing a strong bearish signal from both a macro and sentiment perspective.
✅ Bearish USD Drivers: FOMC Pivot Watch: July meeting minutes hinted at potential rate cuts before year-end due to inflation moderating and soft jobs data.
Rising Swiss Franc Demand: CHF is benefiting from safe haven flows amid escalating tensions in Eastern Europe and shaky U.S. equity markets.
Swiss CPI Stable: Inflation is in check, allowing SNB to maintain their policy stance without pressure.
Institutional traders are reducing their exposure to the U.S. dollar, while retail traders are net long USDCHF — a classic contrarian bearish signal. Seasonality also favors Swiss Franc strength in August. On the macro side, U.S. data is underwhelming: job growth has slowed, services PMI is soft, and inflation metrics (CPI, PCE) are cooling. This has increased expectations for a Fed rate cut later in the year. Meanwhile, the Swiss National Bank remains stable with no urgency to ease policy. Combined with global risk-off sentiment, capital is flowing into CHF, giving it an added edge over the dollar.