FxWirePro- USDCHF Trade Idea

The currency pair pared most of the gains on board-based US dollar selling. It hit an intraday low of 0.90290 and is currently trading around 0.90316. The intraday bias appears to be bearish as long as the resistance 0.9705 holds.

On the other hand, President Donald Trump has put his new trade tariffs on Mexico and Canada on ice for 30 days. In return, each country has made commitments to the United States by enhancing border security. The announcement led to a U.S. dollar decline by nearly 0.7% Fon ebruary 4, 2025. After putting the pause into effect, the emerging market assets increased in value. The MSCI Emerging Markets Index increased 1.7%. Critics argue that this could just be a tactic to carry on the negotiations while threatening future tariffs. The halt provides temporary relief but leaves forward uncertainty concerning potential future trade arrangements and possible retaliatory practices from Canada and Mexico.

Technical Analysis and Resistance Levels

The pair is trading below the 34-EMA and above the 55-EMA on the 4-hour chart indicating a mixed trend. The immediate resistance is at 0.9075 any break above  targets 0.9100/0.9150/0.9200/0.92250/0.9275/0.9030. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.9030, any violation below will drag the pair to 0.9000/0.8940/0.8890.

Bullish Indicators

CCI (50) - Bullish
Directional movement Index - Bullish

Trading Strategy Recommendation

It is good to sell on rallies around 0.9048-50 with a stop-loss at 0.9100 for a TP of 0.8894.