USD/CHF Tests 0.7995 as Dollar Gains on Middle East TensionsUSD / CHFIBKR:USDCHFJohn_IsigeThe USD/CHF pair continues its upward correction for the second consecutive month, testing the 0.7995 level, as geopolitical tensions and inflation risks strengthen demand for the U.S. dollar. The escalation of the Middle East conflict remains the key driver supporting the greenback. ⸻ Geopolitical Risks Support the Dollar Market sentiment remains cautious following: •Potential Pentagon ground operation in Iran •Risks of retaliatory strikes on energy infrastructure •Ansar Allah joining the conflict •Threats to Bab el-Mandeb shipping route Additionally: •IRGC strikes on aluminum plants in UAE and Bahrain •Rising commodity prices •Increased inflation risks These developments are strengthening safe-haven demand for the U.S. dollar. ⸻ Fed Policy Expectations Support USD The Federal Reserve is expected to maintain restrictive policy: •Inflation: 2.4% YoY •Core inflation: 2.5% •Labor market remains stable Upcoming data expectations: •Unemployment: 4.4% •Employment: +56K Fed officials continue to support higher rates for longer. ⸻ Swiss Franc Weakens on Economic Data The Swiss franc remains under pressure after: •KOF indicator dropped to 96.1 from 103.8 •Below forecast of 101.1 SNB policy remains cautious, with potential currency intervention still possible. ⸻ Technical Analysis USD/CHF is testing 0.7995 resistance: Indicators: •Bollinger Bands turning upward •MACD positive •Stochastic rising ➡️ Bullish momentum remains intact ⸻ Key Levels Resistance •0.7995 •0.8117 •0.8178 Support •0.7873 •0.7751 •0.7629 ⸻ Trading Scenarios Bullish Scenario Buy above 0.7995 •Entry: 0.8000 •Targets: 0.8117 → 0.8178 •Stop-loss: 0.7910 •Timeframe: 5–7 days ⸻ Bearish Scenario Sell below 0.7873 •Entry: 0.7870 •Targets: 0.7751 → 0.7629 •Stop-loss: 0.7960 ⸻ Outlook USD/CHF remains supported by: •Geopolitical risks •Fed policy expectations •Weak Swiss data •Break above 0.7995 → bullish continuation •Break below 0.7873 → corrective decline Short-term outlook remains bullish.