The USD/CHF pair continued to rise as bullish momentum strengthened. The next resistance levels to watch are at 0.9050, followed by 0.9100 and the May 24 high of 0.9158. Key support levels include the 50-day moving average at 0.9029, the 0.9000 level, and the 100-day moving average at 0.8982.
The USD/CHF pair extended its rally for a second consecutive day, gaining 0.47% on Monday and trading at 0.9042 on Tuesday, above its opening price by 0.20%.
The technical outlook for the USD/CHF pair shows a resumption of the uptrend after a pullback to a three-month low of 0.8826. The Greenback has recovered, rallying more than 2.20% and surpassing key technical levels such as the 200-day and 100-day moving averages at 0.8895 and 0.8982, respectively. The Relative Strength Index (RSI) supports the buying momentum.
Further strength in the USD/CHF pair could lead to a challenge of the psychological level at 0.9050, followed by 0.9100 and the May 24 high of 0.9158. On the downside, initial support lies at the 50-day moving average at 0.9029, followed by the 0.9000 level and the 100-day moving average at 0.8982.
In conclusion, the USD/CHF pair shows a positive price action on the daily chart, indicating bullish sentiment. The Swiss Franc (CHF) is considered a safe-haven asset due to Switzerland’s stable economy, strong export sector, and political neutrality, making it a popular choice for investors during times of market stress. The Swiss National Bank (SNB) plays a key role in determining the value of the CHF through its monetary policy decisions. Economic data releases in Switzerland are also important factors influencing the CHF’s valuation, as the country’s economy is closely tied to the Eurozone.