USD/CHF Plunges on Broad Dollar Weakness: Bearish Outlook Prevails

The currency pair declined sharply on board-based US dollar selling. It hit an intraday low of 0.85230 and is currently trading around 0.85478. The intraday bias appears to be bearish as long as the resistance 0.8865 holds. 

Mixed Economic Data from Switzerland

In Switzerland, the Consumer Price Index (CPI) saw a 0.6% month-over-month increase in February 2025, the first in nine months and above the anticipated 0.5% gain. However, in March 2025, the CPI remained unchanged at 0.0% month-over-month, falling short of the projected 0.1% increase.

US Services Sector Growth Slows

The US ISM Services PMI was at 50.8% in March 2025, for the ninth consecutive month of increase in the service sector but short of the market forecast and lower than last month at 53.5%. The Business Activity Index rose to 55.9%, whereas the New Orders Index dropped to 50.4%. The Employment Index dipped to 46.2%, for the first time in half a year. There are still apprehensions regarding administrative actions like tariffs potentially being able to affect demand and economic growth. Overall, the service sector is still growing, but its resilience to negative economic shocks appears limited

Technical Analysis Points to Further Downside

The pair is trading below the 34-EMA and 55-EMA on the 4-hour chart indicating a minor up trend. The immediate resistance is at 0.8620 any break above targets 0.8660/0.8725/ 0.8760/0.8800. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.8500, any violation below will drag the pair to 0.8450/0.8420/0.8375.

Bullish Indicators

CCI (50) - Bearish
Directional movement Index - Bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.8600 with a stop-loss at 0.8660 for a TP of 0.8425