USD/CHF falls back below 0.77 as sellers look for a floor

💡 DMK Insight

USD/CHF’s persistent downtrend signals deeper bearish sentiment, and here’s why that matters: With lower highs and lower lows since November 2025, the pair is clearly in a bearish phase. Trading well below the 50 EMA at 0.7882 and the 200 EMA at 0.8125 indicates that sellers are firmly in control. This trend could be exacerbated by broader economic factors, such as potential interest rate changes or geopolitical tensions affecting the Swiss economy. Traders should keep an eye on these EMAs as resistance levels; a failure to reclaim the 50 EMA could lead to further downside. On the flip side, if the pair manages to break above the 50 EMA, it could signal a shift in sentiment, prompting a short-covering rally. But for now, the focus should be on the downside. Watch for key support levels that could trigger stop-loss orders or new selling opportunities. Keeping an eye on the daily chart for any signs of reversal or consolidation is crucial in this environment.