The recent steep decline brought USDCHF back to the 0.8040 zone, yet the market did not see a continued sell-off. Instead, price action tightened and a recovery emerged, indicating that supply is gradually being absorbed at the lows.

The key focus now is not how far the price fell, but whether buyers can push USDCHF back above the cluster of EMAs overhead. Should that happen, the rebound could extend toward the 0.8140 level.

The fundamental backdrop remains slightly tilted in favor of the USD, as the Fed maintains a cautious stance while low inflation in Switzerland continues to deprive the CHF of strong upward momentum.