USD/CHF fell about 0.85% on Wednesday after failing to beat Tuesday’s high of 0.8011. It dropped below the 200-day SMA at 0.7940 and traded at 0.7909 after hitting a low of 0.7869.
Price action remained above support at 0.7879, which is the March 3 daily high. The pair also moved back above the 100-day SMA at 0.7886 and held above 0.7900.
Technical Momentum Shifts
The RSI stayed above neutral but turned lower, pointing to rising bearish momentum. If weakness continues, USD/CHF may test the 50-day SMA at 0.7812.
If the pair regains the 200-day SMA at 0.7940, it may move back towards 0.8000. Separately, the Swiss Franc recorded its strongest daily move against the US Dollar in a table of percentage changes between major currencies.
We recall that back in 2025, the pair showed significant weakness, breaking below the key 200-day moving average of 0.7940. This bearish momentum was driven by improving risk sentiment at the time. Today, however, the situation has reversed dramatically, with USD/CHF trading firmly around 0.9150.
The sustained strength in the US dollar is largely due to interest rate differentials, which have widened over the last year. Recent data from March 2026 showed US non-farm payrolls adding a robust 250,000 jobs, prompting the Federal Reserve to signal a “higher for longer” stance on rates. This contrasts sharply with the Swiss National Bank’s policy.
The SNB became one of the first major central banks to cut rates last month, moving by 25 basis points in March 2026. While Swiss inflation is holding at 1.8%, the policy divergence with the US is a powerful driver for a stronger USD/CHF. This fundamental backdrop suggests the path of least resistance remains upward.
Options Strategies For A Strong Dollar
For derivative traders, this environment favors strategies that profit from further US dollar strength. Buying call options on USD/CHF with strike prices around 0.9200 and 0.9250 could capture potential upside in the coming weeks. The premium paid represents the maximum risk on the trade.
Given the strong trend, selling out-of-the-money put options is another viable strategy to collect premium, betting that the pair will not fall below a certain level. For example, a trader might sell a put with a 0.9000 strike price expiring in May. This strategy benefits from both a rising price and the passage of time.
However, we must remember the sharp sentiment shifts seen in 2025, when geopolitical news caused sudden reversals. Therefore, using defined-risk strategies like bull call spreads could be more prudent. This involves buying a call option and simultaneously selling a higher-strike call to finance the purchase and cap the risk.
