USD/CHF builds reversal momentum as focus shifts to US payrolls

USD/CHF has demonstrated building reversal strength, climbing from recent lows as the dollar regains footing ahead of crucial US employment data. The pair has broken above key moving averages, suggesting a potential trend change after weeks of consolidation. Swiss franc safe-haven demand has waned as global risk sentiment stabilizes, while the greenback benefits from yield differentials and economic resilience expectations. Technical analysis reveals USD/CHF breaking above 0.8850 resistance, now turned support, with momentum indicators turning bullish. The next target lies at 0.8920, coinciding with the 50-day moving average. The upcoming payrolls report stands as a critical catalyst, with strong data potentially accelerating gains toward 0.9000. Conversely, weak employment figures could halt the reversal, sending the pair back toward 0.8800. Traders are positioning for increased volatility around the data release.