The USDCHF is trading lower in response to declining yields, though price action has remained choppy throughout the session. The pair initially dropped to 0.87575, a level that aligns with the December 8 low at 0.8758, providing temporary support. So far, this level has held, but if broken, downside targets include the December 6 low at 0.8731, followed by a swing area between 0.8699 and 0.8711.

On the upside, immediate resistance is seen at the 50% retracement level of the September 2024 to January 2025 rally, located at 0.87868. This level has been tested multiple times, with price action fluctuating above and below it in recent sessions, highlighting consolidation around this point. Further resistance comes from the 200-day moving average at 0.88174, which has acted as a cap on upside momentum.

If the 50% retracement level holds as resistance, sellers will remain in firmcontrol, reinforcing a bearish outlook in the short term.

However, if broken, and if there can be a sustained break above the 200 day MA at 0.88174, it would shift momentum back toward buyers.