- The USD/CHF expands the acquisitions because the benefits of the US dollar from the positive trading deal headlines.
- US claims unemployed drops to 228K, supporting USD's greater strength.
- Technical indicators show the main resistance to 0.9050 and support near 0.8900.
The USD/CHF pair is higher in trading as the US dollar (USD) gets momentum in mixed economic signals and trade optimism, while the Swiss Franc (CHF) weakens the middle of a broader sentiment at risk. US President Donald Trump announced a “major trade deal” to the United Kingdom (UK), even though the initial excitement was cooled after reports indicating that a 10% tariff on the UK goods would remain in the area, limiting the potential economic strengthening of the agreement.
The US Dollar Index (DXY) remains stable, trading near 100.00 as investors dissolve positive data on economic and trade titles. The US's initial claim that unemployed fell to 228k for the week ending May 3, down from 241k last week, signing an elastic labor market. Meanwhile, the Bank of England (BOE) has cut off the Benchmark's interest rate by 25 basis points to 4.25%, which further supports the USD as expansion of the difference -the harvest variety.
In Switzerland, the economic perspective remains clouds as trade uncertainty continues. The Swiss National Bank (SNB) maintains a careful bearing, with recent data suggesting muted inflation pressure. This variation on financial policy weighs the CHF, making it less attractive to the current atmosphere at risk.
Technical analysis
From a technical point of view, the USD/CHF tests resistance near 0.9050, with additional barriers to 0.9080 and 0.9100. On the downside, the support can be seen at 0.9000, followed by 0.8950 and 0.8900. The RSI is in the neutral territory, reflecting a balanced outlook, while the MACD shows a bullish crossover, which indicates the potential for further acquisitions. However, longer moving averages such as 100-day SMA (0.8920) and 200-day SMA (0.8880) suggest a careful longer perspective, highlighting the importance of long momentum for a significant breakout.
In summary, the USD/CHF remains supported by a combination of stable US economic data and dovish signals from the central banks of Europe. However, merchants should monitor incoming data and geopolitical headlines for potential volatility in the upcoming sessions.
Sunny chart
