• USD/CHF retreats to 0.8838, down 0.06%, as US Treasury yields dip following Powell’s hawkish remarks, putting sellers in the driver’s seat.
• A ‘gravestone-doji’ formation on the charts suggests further downside risk, challenging the pair’s recent six-week high of 0.8876.
• For a bullish reversal, USD/CHF must reclaim the 0.8900 level, with key resistance and support levels looming at 0.9000 and 0.8819, respectively.

USD/CHF retraces from a six-week high of 0.8876, drops as sellers outpaced buyers, as US Treasury bond yields dropped after the US Federal Reserve Chair Jerome Powell speech. At the time of writing, the USD/CHF is trading at 0.8838, down 0.06%.

USD/CHF Price Analysis: Technical outlook

From a technical standpoint, the USD/CHF clashed with a five-month-old downslope resistance trendline, reaching a new six-week high, but has retraced, trimming its earlier gains and turning negative, so far in the day, about to form a ‘gravestone-doji’ which would suggest further downside expected.

For buyers to resume their uptrend, the pair must reclaim 0.8900. A breach of the latter will expose the fourth-month-old previous support turned resistance trendline above the 0.9000 figure, followed by the 200-day Moving Average (DMA) at 0.9082. Conversely, the USD/CHF first support emerges at a May 4 daily low of 0.8819. Break below will send the pair towards 0.8800, followed by the current week’s low of 0.8759.

USD/CHF Price Action – Hourly chart