The USD/CHF experiences a decline for the fourth consecutive day, currently trading at approximately 0.8000 after a loss of 0.55% late Tuesday during the North American session. Disappointing US economic data and a tariff reduction to Switzerland contributed to a strengthening of the Swiss Franc during the trading session.
The USD/CHF has decreased by 0.55%, reflecting a climate of risk aversion coupled with disappointing US economic indicators. The pair approaches a critical support level; a breach below may reveal further downside potential. Surpassing resistance could pave the way for a move toward the 200-day SMA and enhance the potential for a broader rebound.
The USD/CHF appears ready to approach critical support levels identified at the 20- and 50-day SMAs, approximately 0.8002/0.7982. A breach of that confluence could lead to a decline towards the October 29 low of 0.7925, prior to testing 0.7900.
On the other hand, should USD/CHF rise above 0.8100, the subsequent resistance level would be the swing high from November 5 at 0.8124, followed by an examination of the 200-day SMA at 0.8261.