The USD/CHF pair dipped to around 0.9130 during the Asian trading session on Monday, weighed down by a weaker US Dollar (USD). Market caution ahead of Donald Trump’s presidential inauguration has led to increased safe-haven flows, benefiting the Swiss Franc (CHF).
Despite the recent decline, the USD/CHF pair retains a bullish outlook, with price action staying above the key 100-day Exponential Moving Average (EMA) on the daily chart. The upward momentum is also supported by the 14-day Relative Strength Index (RSI), which is currently positioned above the midline at approximately 60.50, indicating a favorable outlook for further upside.
Technical Levels and Outlook for USD/CHF
On the upside, the crucial resistance for USD/CHF is at 0.9200, a psychological level that coincides with the high of January 13 and the upper boundary of the Bollinger Band. A break above this level could open the path toward 0.9225, the high from May 1. Further upside resistance is located at 0.9300, the high from March 17, 2023.
On the downside, initial support is found at 0.9082, the low of January 15. If the pair falls below this level, attention will shift to the key support at 0.9000, the round figure. Additional downside risks are marked by 0.8980, the lower limit of the Bollinger Band, and 0.8874, which aligns with the 100-day EMA.
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