The USD/CHF pair finds support at the 0.9000 level, attracting dip buyers during the Asian session on Thursday. Spot prices trade around 0.9030, marking a 0.15% daily gain. However, the broader market backdrop remains uncertain after the pair’s sharp pullback from the 0.9200 zone earlier in the week.

The US Dollar (USD) shows a mild recovery after hitting a one-week low, supported by a positive risk sentiment that weighs on the safe-haven Swiss Franc (CHF). However, USD’s upside remains limited due to growing expectations that the Federal Reserve (Fed) will cut interest rates twice this year. This sentiment was reinforced by the US ISM Services PMI dropping to 52.8 in January, overshadowing a better-than-expected ADP private-sector jobs report (183K vs. 176K previous).

Meanwhile, escalating US-China trade tensions and the impact of President Donald Trump’s new tariffs could temper risk appetite, preventing aggressive CHF weakness. As a result, further USD/CHF upside may require stronger bullish momentum before confirming a sustainable rebound.

Trade Idea: Consider going long on USD/CHF above 0.9045, targeting 0.9120, with a stop-loss at 0.8990. Cautious Fed outlook and trade war concerns may keep CHF demand elevated.