- USD/CHF trades near a critical resistance zone because markets assess current tariff uncertainty and pliable economic data in the USA.
- Consumer sentiments in the USA weakened at the beginning of May, increasing the concerns about economic perspectives.
- Technical levels suggest that growth is confined near 0.8540, with forceful support of about 0.8320.
On Friday, the USD/CHF pair is higher, testing a significant resistance zone near 0.8380, because traders digest mixed economic signals from the United States and ongoing global commercial tensions. Despite the slight enhance in 0.28% of the day, the advantage of the couple remains confined by wider concerns about the US economic resistance and the uncertainty of tariff policy. The American dollar index (DXY), the Greenback results indicator compared to the six main currencies, sales about 100.80 flat, reflecting a careful market tone.
The American dollar finds support because wider risk moods remain brittle. However, the last economic data increased the concerns about the US growth perspective. The initial indicator of consumer moods from the University of Michigan dropped to 50.8, compared to 52.2 in April, which emphasizes market expectations and emphasizing the decline in household trust. Inflation expectations have also increased, and the annual forecast increased to 7.3% from 6.5%, while the five -year perspective increased to 4.6% from 4.4%, which suggests that price pressure is becoming more and more rooted.
Adding to this, the April PPI data was softer than expected, with a PPI header at -0.5% of the month of the month, while Core PPI also concluded a contract by -0.4%, increasing fresh fears about the price of American companies. Meanwhile, US President Donald Trump suggested a fresh wave of tariffs that will be implemented in the next two to three weeks, additionally clinging to the prospects of global trade and US economic stability.
Technical analysis
From a technical point of view, USD/CHF faces a critical test of 0.8540, which is in line with 23.6% withdrawal of Fibonacci from inheritance training from the 2022 summit. This level also means significant previous support from 2015, which broke at the beginning of this year, strengthening its importance as resistance zones. A constant break over this area would indicate a wider reversal of trends, potentially focused on the middle point of decline 2022-2025 to 0.8706.
However, the lack of cleaning 0.8540 may cause a deeper withdrawal, with immediate support of 0.8320, a key long-term level of Fibonacci, which previously acted as a structural basis in 2015-2016. Further inheritance goals include 0.8185 and a long -term low cycle near 0.7770.
The relative force indicator (RSI) remains subdued, floating to around 37.2 on a weekly chart, indicating that the bear’s rush is bland, but far from reversing. The couple also test their 10-week-old moving average (SMA) near 0.8419, which is a critical short-term level of resistance.
Without a decisive breakthrough above 0.8540 USD/CHF will probably remain confined in the near future, with the risk of sales pressure again, if American data continues to disappoint. The wider technical picture remains bear, and the couple requires confirmed monthly close above this level to confirm the reversal of the trend.
