Insights 
VT 
The USDCHF is trading lower due to declining yields, with price action appearing choppy throughout the session. The pair initially fell to 0.87575, temporarily supported by the December 8 low at 0.8758.
Should this level break, the next downside targets are the December 6 low at 0.8731 and a swing area between 0.8699 and 0.8711. On the upside, immediate resistance is at the 50% retracement level of the September 2024 to January 2025 rally at 0.87868.
Key Resistance Levels
This level has been frequently tested, indicating consolidation, while further resistance is provided by the 200-day moving average at 0.88174. A sustained break above the 200-day MA would shift momentum towards buyers.
The market has been reacting to shifts in yields, pulling the pair lower while keeping movements choppy. The decline seen earlier in the session saw a temporary hold at the December 8 low, though pressure remains. If selling persists, the next areas to watch are the December 6 low and the established zone between 0.8699 and 0.8711, where past reactions suggest some interest from buyers.
On the other hand, resistance is nearby. The 50% retracement of the move from September 2024 to January 2025 has been a focal point, with price repeatedly testing this region. The longer price remains around this level without a break in either direction, the more likely it is that traders are waiting for a catalyst. Above that, the 200-day moving average remains another hurdle, and history has shown that a decisive move through this point tends to shift control.
Market Sentiment
The current setup suggests that both sides of the market are keeping an eye on technical boundaries, with neither gaining full control. Traders should remain aware of how price behaves around these key levels, as failure or success at any of them will provide strong signals in the days ahead.
