USD/CHF stalls below 0.7940 in a calm New Year session

USD/CHF is currently stalled just below the 0.7940 level, entering a calm New Year session ahead of the US market opening. The pair closed the year with a more than 12% decline from levels seen in late December, edging up from a three-month low around 0.7860. This stagnation, while drawing investor attention, does not suggest a strong trend in either direction. Bearish sentiment towards the dollar persists, significantly influenced by upcoming economic indicators and interest rate expectations. Market participants appear to be adopting a wait-and-see approach leading into these events. Although the dollar has shown some signs of temporary strength, it continues to face robust resistance, particularly at the 0.7940 level, which holds both psychological and technical significance. Failure to break above this level could lead to a renewed downside risk, a key consideration for short-term trading strategies.