• The USD/CHF downtrend remains intact, with a path of least resistance downwards as long as it remains below the 61.8% Fibonacci retracement level at 0.8819.
• Sellers might extend their drive and test the year-to-date (YTD) low of 0.8554 if the pair crosses the 0.8600 mark.
• From an oscillator perspective, the downward aiming Relative Strength Index (RSI) and sellers' influence suggested by the three-day Rate of Change (RoC) align with the bearish bias.

USD/CHF retreats after reaching a daily high of 0.8700 and drops to a new two-day low amid a risk-on mood ahead of the US Federal Reserve (Fed) monetary policy decision. At the time of writing, the USD/CHF exchanges hands at 0.8640, down 0.59%.

USD/CHF Price Analysis: Technical outlook

The USD/CHF downtrend remains intact as long as the exchange rate stays below the May 4 daily low of 0.8819, confluence with the 61.8% Fibonacci (Fibo) retracement. Once that level is broken, the next resistance will emerge at the next confluence of the 50-day EMA and the 78.6% Fibo level at the 0.8875/0.8900 area, followed by the 0.9000 mark.

Nonetheless, the USD/CHF path of least resistance is downwards, as it resumed its fall to a fresh two-day low, past the 23.6% Fibo retracement at 0.8659. The following support emerges at the 0.8600 figure, and if sellers gather momentum, it could extend and test the year-to-date (YTD) low of 0.8554.

From an oscillator standpoint, the Relative Strength Index (RSI) aimed downward as the USD/CHF downtrend resumed, while the three-day Rate of Change (RoC) portrays sellers' entering the market.

USD/CHF Price Action – Daily chart