The USD/CHF currency pair has observed a decline, currently trading around 0.9130 during the Asian session on Monday, marking a decrease of 0.22% for the day. However, a generally positive sentiment remains as the pair continues to trade above its 100-day Exponential Moving Average (EMA) and the Relative Strength Index (RSI) indicates bullish momentum.
Recent market dynamics have contributed to the depreciation of the US Dollar, while a cautious atmosphere prevails in anticipation of Donald Trump’s presidential inauguration. This uncertainty is prompting a shift towards safe-haven assets, which has benefitted the Swiss Franc (CHF).
From a technical perspective, the USD/CHF pair exhibits a bullish stance, maintaining support above its significant 100-day EMA. The RSI, situated above the midline near 60.50, reinforces the potential for further upside movement as it suggests growing upward momentum among traders.
Investors should note that the immediate resistance is positioned at 0.9200, a critical psychological level that has shown significance in the past. Should the pair break above this barrier, it could open the doors for a move towards 0.9225, which represents the high recorded on May 1. Additionally, if momentum persists, further gains could target the resistance at 0.9300, corresponding to the high from March 17, 2023.
Conversely, the initial support for the USD/CHF pair stands at 0.9082, influenced by the low seen on January 15. A further decline below this support could lead to a test of 0.9000, a key psychological milestone. Traders will also be monitoring the lower boundary at 0.8980, followed by the 100-day EMA at 0.8874 for additional downside indicators.
