• USD/CHF remains sidelined around two-year high amid pre-Fed trading lull.
• Bearish candlestick formation, RSI conditions hint at the profit booking moves.
• Bullish chart pattern, 10-DMA could challenge the bears.

USD/CHF bulls run out of steam inside a 15-pip trading area surrounding the highest levels since April 2020 during early Wednesday.

In doing so, the Swiss currency (CHF) pair respects the previous day’s bearish candlestick formation, namely the “Hanging Man”, as well as the overbought RSI conditions.

However, a one-month-old ascending trend channel could challenge the USD/CHF bears unless the quote drops below 0.9733 support.

Even if the pair defies the bullish channel formation, the 10-DMA level surrounding 0.9680 will act as an additional filter to the south before welcoming the bears.

Meanwhile, April 2020 peak, near 0.9805, will act as an immediate upside filter during the USD/CHF pair’s further advances.

Following that, the aforementioned channel’s resistance line and March 2020’s high, respectively around 0.9875 and the 0.9900 threshold, will be in focus.

Overall, USD/CHF prices are likely to trim some gains but the bears have a long way to go before retaking control.

USD/CHF: Daily chart

Trend: Pullback expected