• The USD/CHF climbs and reduces Monday’s losses, up by 0.02%.
• Sentiment remains dampened, courtesy of the buoyant greenback.
• USD/CHF Price Forecast: The 1-hour chart price action and oscillators suggest a downward move.

The USD/CHF snaps three consecutive days of losses and jumps from weekly lows near 0.9550s, after a long three-day weekend in the US, in the observance of Memorial Day. At the time of writing, the USD/CHF is trading at 0.9572, reflecting the broad US Dollar strength.

The market sentiment remains negative, as shown by global equities falling. In the meantime, the US Dollar Index is up by 0.38%, sitting at 101.753, underpinned by US Treasury yields. The 10-year US Treasury yield raises four bps and parks around 2.846%.

USD/CHF Tuesday’s price action showed that the USD/CHF opened near the daily’s pivot point and rallied shy of the R2 pivot point, at 0.9620. Then the major dropped towards the central daily pivot point, where it currently stands.

USD/CHF Price Analysis: Technical outlook

The 1-hour chart depicts the USD/CHF trading within the narrow Bollinger band’s range, meaning that volatility is constrained. The 20, 50, and 100-hour simple moving averages (SMAs) lie within the 0.9571-91 range, while the 200-hour SMA sits comfortably around 0.9636, and the Relative Strength Index (RSI) is below the 50-midline at 43.28, aiming lower. Therefore, the USD/CHF in the near term is downward biased.

That said, the USD/CHF first support would be the Bollinger’s band lower band at 0.9570. A breach of the latter would expose the confluence of the May 22 low and the S1 daily pivot at 0.9544, followed by the April 20 high-turned-support at 0.9536.

Key Technical Levels