Dollar Loses Luster: USD/CHF Eyes 0.7800 as Fed Tensions Mount

USDCHF lost its shine on board-based US dollar strength.It hits an intraday low of 0.79932 and is currently trading around 0.7933. Intraday bias appears to be bearish as long as the resistance 0.8090 holds.  

In June 2025, President Donald Trump sharply escalated his public criticism of Federal Reserve Chair Jerome Powell, labeling him “terrible” and “very stupid” due to Powell’s refusal to lower interest rates. Trump contends that this stance is detrimental to the economy and exacerbates government debt. He has openly stated that he is considering replacements for Powell, whose current term concludes in May 2026, and indicated that an announcement could come as soon as September or October.

These developments have unsettled financial markets, as evidenced by a weaker U.S. dollar and broader concerns regarding the Federal Reserve’s independence. Powell, in response, has maintained that the Fed’s decisions are guided by cautious, data-driven analysis and cautioned that President Trump’s tariff policies could increase inflationary pressures. This ongoing, highly public dispute is widely seen as an attempt by Trump to exert influence over monetary policy ahead of the impending Fed chair transition, raising significant questions about the traditional autonomy of the central bank.

Technical Analysis Points to Further Upside

The pair is trading below  the   55-EMA, 200 EMA and 365 EMA on the 4-hour chart  indicates a bearish trend. The immediate resistance is at  0.8050 any break above  targets 0.8090/0.8140/0.8180/0.8250/0.8300.

Support Levels and Potential Declines

On the downside, near-term support is around 0.7980, any violation below will drag the pair to 0.7920/0.7800.

Indicators (4-Hour)

CCI (50) - Bearish

Directional movement Index -  Bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.8048-50 with a stop-loss at 0.8090 for a TP of 0.7800.