USDCHF pared some of its gains after weak US ISM PMI data. It hits an intraday high of 0.80680 and is currently trading around 0.80463.
Misses of 49.0% and six straight months of contraction, the US ISM Manufacturing PMI for August 2025 increased a little to 48.7% from 48.0% in July. Although new orders increased to 51.4% (+4.3 points) and supplier deliveries increased to 51.3% (+2.0 points), production fell greatly to 47.8% (-3.6 points) and employment remained weak at 43.8%, reflecting ongoing difficulties. Though somewhat lower at 63.7%, the index of prices emphasized ongoing input cost inflation caused by tariffs, a big disturber named by survey respondents. lower competitiveness and supply chain challenges. The report highlights tariff-related challenges and conflicting economic signals for Federal Reserve policy decisions, notwithstanding some good indicators like fresh orders back to growth.
Technical Analysis Points to Further Upside
The pair is trading above the 55-EMA, below the 200 EMA and 365 EMA on the 4-hour chart, indicating a mixed trend. The immediate resistance is at 0.8070; any break above targets 0.8090/0.8135/0.8170/0.8215/0.8250.
Support Levels and Potential Declines
On the downside, near-term support is around 0.8020; any violation below will drag the pair to 0.8000/0.7980/0.7920/0.7860/0.7800.
Indicators (4-hour chart)
CCI (50) - Bullish
Directional Movement Index - Neutral
Trading Strategy Recommendation
It is good to buy on dips around 0.8038-40 with a stop-loss at 0.8000 for a TP of 0.8130.
