USD/CHF Crashes Below 0.8000 as Swiss Deflation Roars Back

USDCHF trades below the 0.8000 level on board-based US dollar selling. Currently trading at 0.8000, it reached an intraday low of 0.7999.

With a -0.2% m/m drop (worse than the anticipated -0.1% and following October's -0.3%), Switzerland's November 2025 CPI startled to the downside, pushing annual headline inflation to 0.0%—the lowest since mid-2021 and lower than the +0.1% forecast. While broad-based deflation was present in food, apparel, household goods, transportation, and particularly imported goods (-1.3% y/y), core inflation slowed to +0.4% y/y. The SNB's current policy position faces more difficulty as underlying indexes at four-year lows add to the deflationary pressure, therefore raising the chances of renewed negative interest rate discussions even as the franc somewhat strengthened on the dovish signal ahead of the December meeting.

Technical Analysis Points to Further Bullishness

The pair is trading below the 55-EMA,the 200-EMA, and 365 EMA on the 1-hour chart, indicating a bearish trend. The immediate resistance is at  0.8020; any break above targets  0.8060/0.8105/0.8150/0.82180.

Support Levels and Potential Declines

On the downside, near-term support is around 0.7990; any violation below will drag the pair to 0.7965/ 0.7920/0.7865/0.7800.

Indicators (1-hour chart)

CCI (50) - Bearish

Directional Movement Index -  Bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.8020-225 with SL around 0.8060 for a TP of 0.7900/0.7865.