USD/CHF Pares Gains After 4.4% GDP Blowout: Sell Rallies to 0.7860 Target

USDCHF pared some of its gains after mixed US economic data. With an intraday low of 0.79169, it is presently trading at 0.79180. Any infraction under 0.7860 confirms more bearishness.

The final U.S. GDP growth rate for the third quarter of 2025 was 4.4% annually, as announced today at 1:30 PM GMT. This growth was mainly due to a 3.5% increase in consumer spending, plus exports and government spending. This is in spite of a 5.7% drop in investment. The price index for personal consumption expenditures went up by 2.8%.

New applications for unemployment benefits for the week ending January 17 went up slightly by 1,000 to 200,000. This is still less than the predicted 209,000. Ongoing unemployment claims fell by 26,000 to 1.849 million. These numbers suggest the job market is stable, with few layoffs after the holidays and government influences. These reports point to a strong economy and support predictions of a soft landing. Current forecasts estimate Q4 growth near 5%.

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  0.7965; any break above targets  0.8000/0.8040/0.8070/0.8090/0.8150/0.82180.

Support Levels and Potential Declines

On the downside, near-term support is around 0.7860; any violation below will drag the pair to 0.7800/0.7770.

Indicators (4-hour chart)

CCI (50) - Bearish

Directional Movement Index -  Neutral

Trading Strategy Recommendation

It is good to sell on rallies around 0.7968-70 with SL around 0.8000 for a TP of 0.7860.