The USD/CHF pair edged higher to around 0.8180 during early European trading on Tuesday, supported by a modest rebound in the US Dollar. However, ongoing tariff uncertainties and escalating geopolitical tensions in the Middle East are likely to strengthen the Swiss Franc (CHF) as a safe-haven asset, presenting a potential headwind for the pair.
From a technical perspective, the bearish outlook for USD/CHF remains intact, with the pair struggling to break above the critical 100-day Exponential Moving Average (EMA) on the daily chart. Downward momentum is further confirmed by the 14-day Relative Strength Index (RSI), which sits below the neutral 50 mark at approximately 39.60, signaling a prevailing downside bias.
Initial support is found at the lower Bollinger Band near 0.8130. A decisive breach below this level could open the door to 0.8039, the low recorded on April 21. Beyond that, the psychological 0.8000 level stands as the next major support barrier.
On the upside, resistance emerges at 0.8347, the high from May 29. A sustained move above this could clear the path toward 0.8450, the upper limit of the Bollinger Band. Further gains might test the 100-day EMA at 0.8542, which represents a key technical hurdle for the USD/CHF pair.
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