Trump's "Great" Dollar Sends USD/CHF Crashing to 2011 Lows

Following Trump's comments on dollar devaluation, USDCHF fell drastically to lowest level since August 2011. Having made a low of 0.76013 yesterday, it is currently trading at 0.76711.

Speaking in Iowa on January 27, 2026, President Donald Trump referred to the current level of the U.S. dollar as "great" and showed no concern over its roughly 10% depreciation over the past year —a significant departure from his first-term advocacy for a strong dollar. Remembering his earlier attacks on China and Japan, the remark is interpreted as unspoken endorsement of a purposefully weaker currency to improve U.S. export competitiveness, reduce trade deficits, and counteract foreign currency behavior. Markets reacted fast with a dramatic selloff: the DXY index fell 1.3% to 95.566, its lowest since February 2022 and the largest single-day drop since April 2025; the yen rallied on speculation of coordinated U.S.-Japan actions ahead of the Federal Reserve's next rate choice. Analysts think this fits administration advisors' preference for tariffs combined with exchange-rate benefits, therefore raising anticipations of sustained dollar downturn across 2026 and tightening pressure on Federal Reserve independence.

Technical Analysis Points to Further Bullishness

The pair is trading below the 55-EMA,200-EMA, and 365-EMA on the 4-hour chart, indicating a bearish trend. The immediate resistance is at  0.7700; any break above targets  0.7765/0.7800/0.7865/0.7925/0.7965/0.8000.

Support Levels and Potential Declines

On the downside, near-term support is around 0.7600; any violation below will drag the pair to 0.7540/0.7500.

Indicators (4-hour chart)

CCI (50) - Bearish

Directional Movement Index -  Bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.7748-50 with SL around 0.7800 for a TP of 0.7500.