Below 0.8220: USD/CHF Price Forecast highlights continued US Dollar vulnerability

USD/CHF remains down more than 0.5% on the day. The pair has rebounded from eight-week lows of 0.8127.
A broad US Dollar sell-off has followed US President Donald Trump's midterm election defeat.
A Double Top around 0.8380 is confirmed by Tuesday's rejection at 0.8220.

USD/CHF is down more than 0.5% on Wednesday. The US Dollar (USD) has surrendered Tuesday’s gains against the Swiss Franc (CHF) as investors assess the implications of a decisive Democratic victory in the US midterm elections. Trading around 0.8160 in the early European session, the pair has recovered from nearly eight-week lows of 0.8127. Its broader downtrend nevertheless remains firmly intact.

TMGM Analysis: Financial Market News, Economic Calendar & Market Insights

Early US election results prompted widespread US Dollar selling on Wednesday, signalling a clear voter rejection of President Donald Trump's policies. Control of Congress and the Senate has passed to the Democratic Party, which also won staunch Republican strongholds including Kansas, North Carolina, and Texas.

ING’s Chris Turner attributes the recent US Dollar rebound to what “probably owes to the fact that the Democrats do not take office until January,” alongside President Trump “accepting these results,” factors that have restrained further selling following the midterms.

Turner nevertheless offers a warning: “ A Democrat Congress would be a mild dollar negative – both in terms of what it would mean for the AI story and the prospect of a prolonged US government shutdown potentially from next summer.”

0.8380 Double Top Confirmed: USD/CHF Technical Analysis

Despite a rebound to 0.8159 in early European trading, USD/CHF continues to trade inside a bearish channel. Tuesday's rejection at 0.8220 confirms a Double Top (DT) at 0.8380, strengthening the case for sellers. On the 4-hour charts, momentum indicators support this assessment. The Relative Strength Index (14) is below 40 but remains above oversold territory. Meanwhile, the Moving Average Convergence Divergence (MACD) is marginally negative, suggesting that near-term upward momentum remains weak.

So far, declines have stalled around 0.8130. The DT's measured target, however, sits between 0.8050 and 0.8070, at the early September lows. For bulls to redirect attention towards the early November highs around 0.8250 and the 28 October high of 0.8313, the pair would need to break above the DT neckline at 0.8220.

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

Swiss Franc: Today's Currency Performance

Today's percentage moves in the Swiss Franc (CHF) against the major currencies listed are set out below. The Swiss Franc recorded its strongest performance against the US Dollar.

	USD	EUR	GBP	JPY	CAD	AUD	NZD	CHF
USD		-0.50%	-0.54%	-0.27%	-0.39%	-0.55%	-0.26%	-0.57%
EUR	0.50%		-0.04%	0.23%	0.09%	-0.07%	0.23%	-0.08%
GBP	0.54%	0.04%		0.28%	0.15%	-0.01%	0.26%	-0.05%
JPY	0.27%	-0.23%	-0.28%		-0.13%	-0.30%	-0.02%	-0.33%
CAD	0.39%	-0.09%	-0.15%	0.13%		-0.17%	0.11%	-0.19%
AUD	0.55%	0.07%	0.01%	0.30%	0.17%		0.27%	-0.02%
NZD	0.26%	-0.23%	-0.26%	0.02%	-0.11%	-0.27%		-0.30%
CHF	0.57%	0.08%	0.05%	0.33%	0.19%	0.02%	0.30%

Percentage movements between major currencies are displayed in the heat map. Select the base currency in the left-hand column and the quote currency in the top row. For instance, selecting the Swiss Franc on the left and following its row across to the US Dollar gives the percentage change for CHF (base)/USD (quote) in the corresponding cell.