FxWirePro-USDCHF Trade Idea

The currency pair declined slightly on board-based US dollar selling. It hit a low of 0.90515 and is currently trading around 0.90710. The intraday bias appears bearish as long as the resistance level at 0.9150 holds.

The U.S. dollar fell sharply following President Donald Trump's inauguration on January 20, 2025. The dollar index fell by around 1.01% to approximately 108.21, which is less than the 26-month high of 110.17 recorded a week ago. The decline of the dollar is attributed to investors taking profits and uncertainty with Trump's economic policies. Investors are interested in details about what Trump is going to do with tariffs against Canada, Mexico, and China. Initial indications from the administration are that it is being cautious and not rushing into tariffs. This careful strategy added to the weakness of the dollar. Markdown overall, though, the uneasiness about future policy shows in the market.

Technical Analysis and Resistance Levels

The pair is trading below the 55-EMA and above the 34-EMA on the 4-hour chart indicating a bearish trend. The immediate resistance is at 0.9150 any break below targets  0.9200/0.92250/0.9275. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.9050, any violation below will drag the pair to 0.9030/0.9000/0.8940/0.8890.

Bullish Indicators

CCI (50) - Bearish
Directional movement Index - Bearish

Trading Strategy Recommendation

It is good to sell on rallies around 0.9085-880 with a stop-loss at 0.9120 for a TP of 0.900.