USD/CHF Forecast: Gains on escalating US-Iran tensions, though the broader technical bias remains bearish.

• USD/CHF edges higher to near 0.7830 during Tuesday’s early European trading hours.
• Fresh US strikes have reduced optimism over a potential peace agreement, lending support to the US Dollar.
• Despite the rebound, the pair maintains a bearish bias below the 100-day EMA, while the RSI continues to signal negative momentum.
• Immediate resistance is seen at 0.7840, with the first support level located at 0.7808.

USD/CHF rebounds toward 0.7830 during Tuesday’s early European session, ending a four-day losing streak. Ongoing uncertainty over US-Iran peace talks is offering modest support to the US Dollar against the Swiss Franc.

According to reports, the US military’s Central Command stated on Monday that American forces conducted strikes in southern Iran in “self-defence.” The military added that it would continue protecting US personnel while exercising restraint amid the current ceasefire.

Investors are now focused on the US April Personal Consumption Expenditures (PCE) Price Index data, scheduled for release later on Thursday. Stronger-than-expected inflation readings could reduce expectations for Federal Reserve rate cuts and provide additional support for the Greenback in the short term.

Technical Analysis

On the daily chart, USD/CHF continues to display a bearish short-term bias, with the pair trading below the 100-day moving average (MA). The price also remains slightly beneath the 20-day Bollinger Band midpoint, highlighting ongoing upside pressure despite a mild rebound from recent lows. Meanwhile, the 14-day Relative Strength Index (RSI) stands at 48, just below the neutral 50 threshold, suggesting bearish momentum has weakened but has yet to turn bullish.

To the upside, the first resistance level is located at the 100-day MA around 0.7840. A sustained daily close above this zone would help ease near-term bearish pressure and could pave the way for a move toward the upper Bollinger Band near 0.7905.

On the downside, immediate support is seen at the May 26 low of 0.7808. Further weakness could expose the lower Bollinger Band around 0.7760. A break below this area would reinforce the broader bearish trend and increase the risk of fresh daily lows.