The USD/CHF pair traded steady near 0.8860 during early European hours on Wednesday as traders positioned cautiously ahead of major US events. Market attention is focused on Federal Reserve Chair Jerome Powell’s speech later today, while Friday’s Nonfarm Payrolls (NFP) and unemployment data are expected to provide additional direction.
The pair retains a bullish outlook, with price levels holding above the 100-day Exponential Moving Average (EMA). Supporting the upward momentum, the 14-day Relative Strength Index (RSI) remains above the midline at 58.00, indicating potential for further gains.
Key resistance is identified at 0.8938, the upper Bollinger Band boundary. A break above this level could extend gains toward 0.8957, the high from November 22, with the critical 0.9000 psychological mark acting as a pivotal barrier for USD bulls.
Conversely, immediate support lies in the 0.8800-0.8795 zone, corresponding to the low from November 29. Should this level fail, the next downside target emerges at 0.8745-0.8735, marking the lower Bollinger Band limit and the 100-day EMA. Powell’s commentary will be closely watched for insights into the Federal Reserve’s monetary policy trajectory.
