The Swissie wins: CHF demand spikes as traders shun the Dollar

Ben Graham · 1 hora atrás

As Macron noted, this trading week initiates what many call the new world disorder – "A world without rules".

This shift arguably began with Russia's invasion of Ukraine, but the precedent has only deepened. With Trump landing in Davos tomorrow for the WEF, global leaders are voicing strong concerns about the current geopolitical landscape.

The latest Board of Peace initiatives from the Trump administration appear designed to further sideline the UN.

Consequently, the US Dollar is facing further rejection as market participants diversify away from erratic US policies. Confidence in the Greenback as a stable reserve currency is eroding as fears from 2025 materialize.

These fears include tariffs, provocations against allies, and attacks on Federal Reserve independence. Despite the US Economy's and Fed's resilience, capital is flowing away from the Dollar.

Gold hit new record highs this morning (to $4,750) as a direct beneficiary.

Conversely, the Japanese Yen remains in a steep downtrend driven by debt burdens and rising yields, hence it can't really sustain its safe-haven reputation.

In this environment, the Swiss Franc has emerged as the primary safe haven.

With SNB rates at 0%, it is also becoming a target for the carry trade. As risk assets like stocks and crypto face rejection alongside the Dollar, the Franc is up another 1% in today's session.

Let's explore the multi-timeframe chart analysis for USD/CHF to see where these flows might take the high-volume traded pair.

Explore:

USD/CHF Multi-Timeframe Technical Analysis

Daily Chart

usdchf daily 2001 — USD/CHF Daily Chart – January 20, 2026 – Source: TradingView

USD/CHF has been stuck in a broader range since July 2025, unable to manage a proper rebound or continue to the downside as the geopolitical and economic dynamics completely eased in the second half.

Volatility is now back to some extremes in FX Markets, particularly in a pair normally held in a ~400 pip average daily range – Today's 1.10% max movement took USD/CHF down some monthly lows and prompting a further breakdown.

Indeed, the action had completely waned out but bears could retake the upper hand looking at the ongoing themes, combined with a 200-Day Moving Average which just caught up with prices.

Sellers also used the 50-Day MA (0.7987) as selling signal and will act as key pivotal indicator for bull/bear action going forward.

4H Chart and Technical Levels

usdchf 4h 2001 — USD/CHF 4H Chart – January 20, 2026 – Source: TradingView

Dip-buyers are now attempting a retracement from the key support.

Still, some key supports which quickly turned into resistances will now have to be breached for a further rebound (without counting a strong turn in current fundamentals).

Look for key reactions at the 0.7950 - 0.7960 resistance.

Levels of interest for USD/CHF Trading

Resistance levels

0.7925 Minor Pivot
0.7950 - 0.7960 Key Resistance
Short-timeframe pivot 0.7990 and 4H 50-period MA (yesterday's highs)

Support levels

0.79 (+80 pips) 2025 main support (Immediate Bounce
Current Session Lows 0.7878
2011 support 0.7830 to 0.7860
2025 Lows 0.7830

1H Chart

usdchf 1h 2001 — USD/CHF 1H Chart – January 20, 2026 – Source: TradingView

Looking closer shows how steep the current move is, with dip-buyers re-entering the pair.

When watching the current pace of the selloff, mean-reversion is not suprising but might also not be long-lived.

A 15 point rally to the 0.7925 Pivot is not far away, and forming a pullback-top here will test the session lows.
- Below that, the next major point will be found at the 2025 0.7830 lows
If bulls manage a rebound above, the 0.7950 Resistance looks like a decent entry for sellers to retake the advantage
USD/CHF can really breakout higher only in the event of another Trump TACO.
- Keep a close eye on the WEF headlines!

Safe Trades!

Follow Elior on Twitter/X for Additional Market News, interactions and Insights @EliorManier

Opinions are the authors'; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. The provided publication is for informational and educational purposes only.
If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please refer to the MarketPulse Terms of Use.
Visit https://www.marketpulse.com/ to find out more about the beat of the global markets.
© 2026 OANDA Business Information & Services Inc.