USD/CHF Price Forecast: Gains ground near 0.8200
- USD/CHF finds cushion near 0.8200, Trump’s tariff uncertainty keeps the pair on the backfoot.
- Federal Appeals court lifts Trump’s tariff ban temporarily.
- The US core PCE inflation rose at a slower pace of 2.5% on year, as expected.
The USD/CHF pair attracts bids after revisiting near the five-week low around 0.8185 during North American trading hours on Friday. The Swiss Franc pair gains ground temporarily as the US Dollar (USD) strives to hold its immediate low, with investors remaining uncertain over the status of United States (US) President Donald Trump’s tariff policy.
The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, recovers moderately to near 99.60 after a sharp downside move the previous day.
On Thursday, the US Appeals court issued a temporary stay on international trade court’s ruling against Trump’s tariffs on the administration’s appeal. The US lower court accused Donald Trump on Wednesday for abusing the “national emergency” law to fulfil his tariff agenda.
During North American trading hours, the US Personal Consumption Expenditure Price Index (PCE) data for April has shown that inflationary pressures have cooled down. The US core PCE inflation, a Federal Reserve’s (Fed) preferred inflation gauge, has grown moderately by 2.5% on year, as expected, compared to the prior release of 2.7%.
USD/CHF retreats after facing selling pressure above the 20-day Exponential Moving Average (EMA), which trades around 0.8300.
The 14-day Relative Strength Index (RSI) strives to hold the 40.00. A fresh bearish momentum would activate if the RSI falls below that level.
The asset could slide towards the April 11 low of 0.8100 and the April 21 low of 0.8040 if it skids below the May 7 low of 0.8186.
On the contrary, a recovery move in the pair above the psychological level of 0.8500 will open the door for more upside towards the April 10 high of 0.8580 and the April 8 high of 0.8611.
USD/CHF daily chart
