USDCHF Trade Setup – 26th Jan

USDCHF is setting up as a clean, high-conviction expression of the current “USD-off / haven-on” macro regime as we move into the European session. With the dollar broadly offered (DXY under pressure) and US yields easing, flows are continuing to rotate into defensive currencies, keeping CHF supported alongside the broader safe-haven complex. From a tactical perspective, USD/CHF provides a relatively “clean” way to trade USD weakness without the same headline-spike profile seen in USD/JPY, making it particularly attractive for structured, risk-defined execution around the London open. USDCHF Trade Setup: Pair Bias & Entries Stop / Invalidation Targets Why A+ (Fundamentals, Technicals, Sentiment) Price Action Driver Near-term catalysts (UK time) USDCHF  SHORT – Sell on rallies between 0.7785 – 0.7815 >0.7860 T1: 0.7700 T2: 0.7640 Fundamentals: USD weak & CHF haven. CHF is getting a haven bid in the same flow complex as JPY and gold. Technicals: downside continuation structure. Price is already in a downtrend impulse (your print 0.7766 and negative daily change). Sentiment: flow aligns with haven bid. Flow alignment is one-way right now: the strongest intraday sentiment tell is the synchronous USD selling across multiple pairs (USDJPY down hard, USDCHF down, USDCAD down).  DXY weakness & overall risk-off theme persisting. Monday 26th Jan: 09:00: Ifo Business Climate 15:30: Dallas Fed Manufacturing Index Chart by TradingView – USDCHF Trade Setup – 26th Jan Conclusion: Our USDCHF short remains an A+ setup while the pair stays below the key invalidation zone and the broader tape continues to confirm USD softness through DXY/yields. Execution is best approached as a “sell-the-rally” trade: let price pull into the defined entry pocket, keep risk tightly controlled with a hard invalidation level, and scale out into the first downside objectives while leaving a runner for extension if momentum accelerates. If we see a decisive reversal in DXY and US yields, or a meaningful fade in haven demand, the setup is invalidated and we step aside, until then, the path of least resistance remains lower. This analysis is for informational purposes only and does not constitute investment advice. Trading involves risk; manage exposure accordingly. For similar FX Trade Setups please visit our FX Trade Ideas page. Please visit our Disclaimer page. Disclaimer Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. TerraBullMarkets.com does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets or any financial instrument involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of TerraBullMarkets.com nor any of its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page. TerraBullMarkets.com and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. TerraBullMarkets.com and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted. The author and TerraBullMarkets.com are not registered investment advisors and nothing in this article is intended to be investment advice. TerraBullMarkets...