On Wednesday, the USD/CHF rallies some 80-pips and gained 0.75%. At 0.9684, the USD/CHF retreated from 0.9701 and recorded an almost two-year fresh high during the day, amidst a positive market sentiment, which improved in the middle of the North American session.
The market sentiment has improved, in fact, for no fundamental reason. China’s covid woes grabbed some attention, but news wires that Shanghai’s lockdown measures might ease shifted investors’ mood. In the meantime, the Ukraine-Russia conflict escalated as Russian company Gazprom halted natural gas exports to Poland and Bulgaria.
In the meantime, the US Dollar Index, a gauge of the greenback’s measure of value against other currencies, edges up some 0.57% sitting at 102.887. The US 10-year Treasury yield is rising, trims some of Tuesday’s losses, and is gaining seven basis points, sitting at 2.791%.
The USD/CHF uptrend appears to be overextended, as shown by the Relative Strenght Index (RSI) with readings of 80, which could open the door for a USD/CHF consolidation in the near term.
With that said, the USD/CHF first support would be the April 26 daily high at 0.9626. Break below would expose the April 26 daily low at 0.9564, followed by the June 30, 2020 cycle high-turned-support at 0.9533.

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