USD/CHF Pride Forecast: Retraces To Near 0.8300

By Sagar Dua of FXStreet

Thursday, May 29, 2025 4:50 AM EDT

USD/CHF gives back the majority of early gains as the US Dollar retreats.
US President Trump faces legal challenges in fulfilling his tariff agenda.
The US court orders the administration to lift reciprocal tariffs, fentanyl, and immigration-related import duties.

The USD/CHF pair gives up a significant part of its initial gains and falls below 0.8300 during European trading hours on Thursday, from the intraday high of 0.8348. Still, the Swiss Franc pair is 0.35% higher around 0.83000. The asset falls back as the US Dollar (USD) retreats in the aftermath of the United States (US) Court of International Trade’s verdict against President Donald Trump using the International Emergency Economic Powers Act (IEEPA) to impose tariffs on all of his trading partners.

The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, surrenders a majority of its early gains after facing resistance above 100.50 and falls back to near 100.00.

Earlier in the day, the Manhattan-based court cited Trump’s decision to invoke IEEPA to justify the imposition of higher import duties to fix large trade imbalances as unlawful. To rectify the same, the court issued a 10-day deadline to the administration for the permanent injunction of reciprocal tariffs announced on the so-called Liberation Day, and those imposed on its North American peers and China regarding border negligence and fentanyl.

Meanwhile, the Swiss Franc (CHF) underperforms amid fears that the Swiss National Bank (SNB) could push interest rates into negative territory to offset downside risks to inflation.

USD/CHF retreats after facing selling pressure above the 20-day Exponential Moving Average (EMA), which trades around 0.8300.

The 14-day Relative Strength Index (RSI) strives to hold the 40.00. A fresh bearish momentum would activate if the RSI falls below that level.

The asset could slide towards the April 11 low of 0.8100 and the April 21 low of 0.8040 if it skids below the May 7 low of 0.8186.

On the contrary, a recovery move in the pair above the psychological level of 0.8500 will open the door for more upside towards the April 10 high of 0.8580 and the April 8 high of 0.8611.

USD/CHF daily chart

(Click on image to enlarge)

More By This Author:

Pound Sterling Extends Losses Against US Dollar As Trade Concerns Ease
Pound Sterling Corrects Against US Dollar, While US Tariff Uncertainty Still Persists
AUD/USD Price Forecast: Strives To Hold 0.6500 For Fresh Rally

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