USD/CHF Holds Steady Above 0.8000 Amid Trade Tensions
USD/CHF fluctuates above 0.8000 as trade concerns persist.
FUNDAMENTAL OVERVIEW:
The US Dollar trades cautiously above the 0.8000 mark against the Swiss Franc on Monday as investors remain on edge over escalating US-China trade tensions that threaten to spark a full-scale trade war.
President Donald Trump attempted to calm markets on Sunday with a more conciliatory message toward China, helping ease sentiment slightly. However, risk appetite remains fragile, leaving the USD/CHF struggling for clear direction after a nearly 1% drop on Friday.
Trade war concerns continue to cap Dollar gains. On Friday, Trump’s announcement of an additional 100% tariff on Chinese imports reignited fears of a renewed trade conflict, driving the Dollar lower across major pairs. In response, China defended its restrictions on rare earth exports and warned it would retaliate against further US measures.
Despite maintaining an overall positive trend from mid-September lows, the Dollar’s recovery faces pressure from ongoing trade uncertainty and the extended US government shutdown. In Switzerland, attention turns to September’s Producer and Import Price data, expected to rise after four months of decline. A rebound could help ease deflation concerns that have been putting increasing pressure on the Swiss National Bank to consider deeper negative rates.
USD/CHF TECHNICAL ANALYSIS CHART:
Technical Overview:
USD/CHF is trading within an up channel.
USD/CHF is moving above all the Moving Averages (SMA).
The Relative Strength Index (RSI) is in Buying Zone, while the Stochastic oscillator suggests Positive trend.
Immediate Resistance level: 0.8074
Immediate support level: 0.8007
HOW TO TRADE USD/CHF
After a sharp drop, USD/CHF found solid support and staged a strong rebound, breaking through a key resistance level with notable bullish momentum. The pair is now encountering upside resistance and may retest the support zone. Holding above this area could pave the way for a continued rally toward the next major resistance.