Geopolitical tensions lift the USD against the CHF, though technical indicators suggest a bearish outlook persists.
The USD/CHF pair climbed to near 0.7830 in early European trading Tuesday, halting a four-day decline. The move follows US military strikes on southern Iran, reported as self-defense measures amid stalled peace talks, which bolstered demand for the USD as a safe-haven asset.
Technical analysis shows the pair remains below its 100-day moving average, with the Relative Strength Index at 48, indicating muted bullish momentum. Resistance is seen at 0.7840, while support lies lower, reflecting ongoing downside pressure.
Traders are also eyeing Thursday’s US April PCE Price Index, which could influence Fed rate cut expectations and further impact the USD’s trajectory.