USDCHF pared most of its gains on board-based US dollar weakness. It hit an intraday low of 0.82273 and is currently trading around 0.82324. Intraday bias appears to be bearish as long as the resistance 0.8405 holds.
The US dollar's recent decline is driven by a confluence of factors, including Moody's credit rating downgrade due to fiscal deficit concerns, dovish Federal Reserve comments, and political uncertainty stemming from President Trump's policies and criticism of the Fed. Trade and geopolitical risks, coupled with fading optimism about US exceptionalism, have further weakened demand for US assets. Market sentiment reflects diminishing confidence in US assets as safe havens, compounded by the Fed's shift towards monetary easing and a broader global de-dollarization trend led by countries like China and Russia. These elements collectively erode investor confidence and increase uncertainty about US economic policy and fiscal health, driving the dollar's downward trajectory
Technical Analysis Points to Further Upside
The pair is trading below the 55-EMA, 200 EMA and 365 EMA on the 1-hour chart indicates a bearish trend. The immediate resistance is at 0.8272 any break above targets 0.8300/0.8350/0.8375.
Support Levels and Potential Declines
On the downside, near-term support is around 0.8200, any violation below will drag the pair to 0.8180/0.8135/0.8090/0.8000.
Bullish Indicators
CCI (50) - Bearish
Directional movement Index - Bearish
Trading Strategy Recommendation
It is good to sell on rallies around 0.82380-40 with a stop-loss at 0.8285 for a TP of 0.8150.
