USD/CHF collapses after the day of liberation, it reaches minimum of several months

• The USD/CHF collapses to the 0.8600 area, reaching its lowest level since October.
• The US tariffs cause global adjustments in the portfolios, intensifying the bearish pressure on the dollar.
• Technical indicators indicate overall conditions; Short -term correction could follow.

During Thursday’s session, the USD/CHF pair suffered a strong fall, falling towards the 0.8600 region and marking its weakest levels in almost six months. This bearish movement occurred in the midst of a generalized weakness of the US dollar after the aggressive announcement of President Donald Trump about reciprocal import tariffs. The American dollar index (DXY) received a hard blow, breaking down decisively while operators fled from US assets and reassigned portfolios away from the dollar. Meanwhile, the overall signs of the impulse indicators suggest that the pair could be ready for a rebound.

Tariff shock hits the US dollar

The revelation of President Trump of a 10% base tariff over all incoming goods, together with a 25% tax on car imports, caused great shock in global markets. Although initially they were well received by their clarity, tariff measures turned out to be highly complex and specific by country, adding uncertainty to commercial dynamics. Investors were quick to readjust the risk, which led to an exodus of US shares and the US dollar equally.

The domino effect was seen in all areas, with the DXY collapsing below 102 for the first time in months. The unemployment applications in the US added to the soft tone, printing 219K – under the provisions and the 225K previously reviewed, pointing to continuous weakness in the labor market. Meanwhile, the ISM services PMI for March disappointed in 50.8, failing in expectations and suggesting a lower growth impulse. Combined with the increase in recession fears, this data cocktail reinforced the notion that the Fed may need to change course before the previously thought.

Technical Perspective: Over -sales conditions emerge

From a technical perspective, the USD/CHF is deeply oversized after a fall of more than 2% in a single session. The relative force index (RSI) has fallen towards extreme territory, while the convergence/divergence indicator of mobile socks (MACD) shows a strong downward impulse. Despite these bearish signs, such readings often precede at least one short -term correction.

The support is observed near the psychological area of ​​0.8600, with deeper levels around 0.8565 and 0.8520 potentially at stake if the sale continues. On the opposite side, the resistance could arise about 0.8650, followed by 0.8720 and the simple 20 -day mobile average, which is currently in the upper part of 0.87.