FxWirePro- USDCHF Trade idea

The currency pair trades slightly higher after recent Trump’s tariff. It hit an intraday high of 0.91958 and is currently trading around 0.91664. The intraday bias appears to be bullish as long as the support level at 0.9070 holds.

The recent tariffs imposed by President Trump have severely dented the Canadian dollar (CAD) as it declined by over 1.5% compared to the U.S. dollar (USD). He started charging 25% tariffs on most Canadian goods and 10% on energy exports effective February 4, 2025, which compelled Canada to retaliate with similar tariffs on U.S. goods. Economists argue that these tariffs will decrease Canada's GDP by about 2.5% and increase the unemployment rate. They may result in higher consumer goods prices and more pressure on households. Therefore, the entire situation may result in a recession and more market volatility.

Technical Analysis and Resistance Levels

The pair is trading above the 34-EMA and 55-EMA on the 4-hour chart indicating a bullish trend. The immediate resistance is at 0.9020 any break above targets  0.92250/0.9275/0.9030. 

Support Levels and Potential Declines

On the downside, near-term support is around 0.9070, any violation below will drag the pair to 0.9030/0.9000/0.8940/0.8890.

Bullish Indicators

CCI (50) - Bullish
Directional movement Index - Bullish

Trading Strategy Recommendation

It is good to buy on dips around 0.90148-50 with a stop-loss at 0.9070 for a TP of 0.92950.