USD/CHF limited ascending to the upward trend, as the induction uncertainty weighs such

• The CHF is trading near a critical resistance area where markets evaluate the constant uncertainty of the definition and economic data of the United States.
• The weakest feelings of American consumers in early May, raising concerns about economic expectations.
• Technical levels indicate that the upper trend has been directed near 0.8540, with strong support around 0.8320.

The USD/CHF pair is trading on Friday, as it tests a large resistance area near 0.8380, where merchants digest mixed economic signals from the United States and continuous global trade tensions. Although modest profit by 0.28 % a day, the upper side of the husband remains restricted due to the broader concerns about American economic flexibility and uncertainty in the customs tariff policy. The US dollar index (DXY), a measure of Greenback’s performance for six main currencies, is traded about 100.80, which reflects the cautious market tone.

The US dollar finds support because the feelings of the wider risk are still fragile. However, modern economic data has added concerns about growth expectations in the United States. The initial consumer feelings index at the University of Michigan decreased to 50.8, a decrease from 52.2 in April, highlighting the market expectations and highlighting the low family confidence. The inflation expectations increased, with one year expectations increased to 7.3 % from 6.5 %, while the five years of expectations increased to 4.6 % than 4.4 %, indicating that price pressures have become more firm.

In addition, PPI data came in April more softening than expected, with the main PPI by -0.5 % one month, while Core PPI also contracted -0.4 %, raising new concerns about the power of US companies. Meanwhile, US President Donald Trump alluded to a new wave of customs tariffs that will be implemented over two to three weeks, which has increased disposal of expectations for global trade and American economic stability.

Technical analysis

From a technical perspective, the US dollar/CHF faces an important test at 0.8540, which is compatible with Fibonacci alternative 23.6 % of the declining trend of the peak of 2022. This level also represents a former support in 2015 that erupted earlier this year, enhancing its importance as a resistance area. A continuous break above this area indicates a broader reflection, which is likely to target the mid-decline point 2022-2025 at 0.8706.

However, the failure of a scanning 0.8540 can lead to a deeper decrease, with immediate support at 0.8320, which is the main long-term Vibonacci level that previously worked as a structural base in 2015-2016. The goals of the additional negative side include 0.8185 and a long -term long round near 0.7770.

The RSI is still defeated, hovering about 37.2 on the weekly graph, indicating that the declining momentum abandons but away from the reflection. The husband also tests the simple moving average for 10 weeks (SMA) near 0.8419, a decisive level of resistance in the short term.

Without a decisive outbreak above 0.8540, USD/CHF is likely to remain closed in the short term, with the risk of renewing sale pressure if US data continues to be disappointed. The broader artistic image remains declining, as the husband needs a monthly closure at this level to confirm the reflection of the direction.

Daily chart