USD/CHF Price Forecast: Continues to face pressure near 0.8850

• USD/CHF struggles to break above 0.8850 as the US Dollar faces pressure.
• US President Trump indicated that he may exempt a lot of countries from tariffs, which he will unveil on April 2.
• The SNB cut its interest rates by 25 bps to 0.25% last week.

The USD/CHF pair struggles to extend its upside above the key resistance of 0.8850 during European trading hours on Tuesday. The Swiss Franc pair ticks lower as the US Dollar (USD) struggles to gain further even though United States (US) President Donald Trump has signaled that come countries would manage to escape from tariffs, which he is scheduled to unveil on April 2. The US Dollar Index (DXY), which tracks the Greenback's value against six major currencies, faces pressure while extending a four-day winning streak above 104.50

On Monday, US President Trump said at the White House that he may give a "lot of countries" breaks on tariffs. Trump reiterated that he is planning to announce tariffs on automobiles, lumber, and chips in a few days.

A trade war by the US with fewer nations would result in a lower impact on its economic growth than investors had feared initially. The US Dollar had a sharp fall in the last months as investors worried that Trump's economic policies could expose the US economy to a recession.

Meanwhile, the Swiss Franc (CHF) is expected to remain under pressure as the outlook of the Swiss economy is uncertain due to external pressures. Last week, the Swiss National Bank (SNB) reduced interest rates by 25 basis points (bps) to 0.25% on Thursday.

USD/CHF seems to revisit the four-month low of 0.8736 plotted from the December 6 low. The outlook of the pair is broadly bearish as it trades below the 200-day Exponential Moving Average (EMA), which is around 0.8875.

The 14-day Relative Strength Index (RSI) rises above 40.00, suggesting that bearish momentum is over. However, the bearish trend is intact.

The asset could face more downside towards the November 8 low of 0.8700 and the November 6 low of 0.8620 if it falls below the December 6 low of 0.8736.

On the flip side, a recovery move above the psychological support of 0.9000 would drive the asset towards the February 28 high of 0.9036, followed by the round-level resistance of 0.9100.

USD/CHF daily chart