- The USD/CHF is being negotiated near a critical support zone while the US dollar index (DXY) changes course before commercial conversations between the US and China in Switzerland this weekend.
- Fed officials have highlighted the risks of stagflation, pointing out the potential of an increase in inflation and unemployment if tariffs remain high.
- Technically, the DXY faces immediate support in 100.2200 and resistance in 101.9000, while the USD/CHF could test its recent minimums if the dollar weakens even more.
The USD/CHF torque is sailing at a critical crossroads while negotiating near a key support level, with the general feeling of the market cloudy by the uncertainties of commercial conversations. The US dollar index (DXY), which tracks the USD against a basket of six main currencies, has recently removed 100,3000 after reaching a maximum of the month of 100,8600. This reversal occurs while the markets digest the implications of commercial conversations between the US and China scheduled for this weekend in Switzerland, along with concerns about a commercial agreement of the United Kingdom that is not satisfactory that failed to eliminate key tariffs. Despite the hopes of an advance, the US position seems weaker, with President Trump suggesting that tariffs could be cut in 50% if China cooperates, although this remains very uncertain.
From a fundamental perspective, Fed remains cautious about economic perspectives. Fed officials, including the president of the Fed in New York, John Williams, emphasized the need for price stability, while Governor Adriana Kugler said that the current political position is “moderately restrictive”, insinuating that rates could remain high despite slow growth. In addition, Atlanta’s Fed recently reviewed its GDPnow model of the second quarter to 2.3% SAAR, reflecting a solid perspective of growth, although the risk of stagflation persists as tariffs continue to interrupt the global supply chains.
Technical analysis
Technically, the DXY is testing support in 100,2200, an old level of resistance that could act as a basis if the bearish feeling persists. Below this, the following support is located at 97,7300, with deeper levels at 96,9400, 95,2500 and 94,5600 if the downward pressure intensifies. On the positive side, the resistance is observed in 101.9000, followed by the 55 -day SMA in 102,4700. For the USD/CHF, a break below the recent support could open the door to new minimums of several years, with potential objectives around 0.8900 and 0.8800 if the general feeling of the USD is still weak.
Daily graph
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.