USD/CHF Gains Momentum: Is 0.8500 Within Reach?

Dollar Dives Amidst Political and Technical Pressures

USDCHF trades higher after upbeat US PMI data. It hits an high of 0.82876 and is currently trading around 0.82779. Intraday bias appears to be bullish  as long as the support 0.8190 holds. 

In April 2025, S&P Global Flash US Manufacturing PMI increased to 50.7, the fourth month of expansion in a row, supported by increasing domestic demand and output growth, suggesting that despite falling export orders due to tariffs, the sector was continuing to improve. Meanwhile, the US Services PMI fell sharply to 51.4, the second-lowest in a year, due to weakening new orders amid client hesitation and an uncertain economic environment. Both sectors experienced a rise in input prices, with manufacturing registering the fastest speed of acceleration since August 2022, leading to higher output prices, while service firms trimmed on hiring. Confidence in manufacturing and service businesses eased, led by concern about rising costs, supply, and economic policy uncertainty.

Technical Analysis Points to Further Upside

The pair is trading above the 34-EMA and  55-EMA on the 4-hour chart  indicates a minor up trend. The immediate resistance is at 0.8300 any break above  targets 0.8325/0.8380/0.8500.

Support Levels and Potential Declines

On the downside, near-term support is around 0.8180, any violation below will drag the pair to 0.8135/0.8090/0.8000.

Bullish Indicators

CCI (50) - Bullish
Directional movement Index -  Bullish

Trading Strategy Recommendation

It is good to buy on dips around 0.8230 with a stop-loss at 0.8180 for a TP of 0.8500.