USD/CHF overbought as franc strength builds near 0.8950

USD/CHF faces increasing downside pressure near 0.8950 as technical indicators signal overbought conditions following the pair's recent rally. The Swiss franc is showing renewed strength as momentum oscillators, including RSI above 70, suggest the dollar's advance against CHF may be overextended. Risk-off sentiment in global markets is also supporting traditional safe-haven demand for the franc, particularly amid ongoing geopolitical tensions and uncertainty over US trade policies. The Swiss National Bank's relatively hawkish stance compared to other European central banks continues to underpin CHF strength. Technical analysis reveals immediate support at 0.8920, coinciding with the 50-day moving average, while resistance sits at 0.8980. A pullback toward 0.8900 appears increasingly likely as traders book profits on long USD/CHF positions. The upcoming US inflation data could accelerate this correction if figures disappoint market expectations.