FxWirePro- USD/CHF Weakens as Safe-Haven Demand Surges

The currency pair  trades weak as demand for safe-haven assets increased. It hits an low of 0.87583 and is currently trading around 0.88078. The intraday bias appears to be bearish  as long as the resistance 0.9000 holds. 

Trump Tariffs Threaten Swiss Exports

Switzerland would be forced to export 31% of a tariff to America under President Trump's policy of reciprocal tariffs, a tariff which had been introduced because America believed Switzerland is imposing a tariff of 61% on a product of America. This would increase the exporter's price of Swiss goods and, subsequently, reduce the Swiss goods' competitiveness in the market, resulting in reduced exports as well as economic stress in Switzerland, with Swiss producers worrying about supply disruption.

Economic Impact and Safe-Haven Status

The tariffs would increase the cost of Swiss luxury items and machinery imported into the U.S., deterring demand and sales, while the Swiss franc incurs higher demand as a safe-haven currency in tariff instability. As part of the overall shift toward more protectionism, the tariffs against Switzerland would trigger retaliatory action by other countries, leading to more complicated international trade and more economic insecurity.

Technical Analysis and Resistance Levels

The pair is trading below the 34-EMA and below  55-EMA on the 4-hour chart  indicates a minor up trend. The immediate resistance is at 0.8700 any break above  targets 0.8760/0.8800. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.86000, any violation below will drag the pair to 0.8525/0.8470/0.8400.

Bullish Indicators

CCI (50) - Bearish
Directional movement Index - Bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.8660 with a stop-loss at 0.8725 for a TP of 0.8500.