USD/CHF Price Analysis: Struggles to rebound from 0.9080 as USD Index corrects further

• USD/CHF is struggling to rebound from 0.9080 amid further correction in the USD Index.
• The Swiss Franc asset has corrected to near the breakout zone of the consolidation.
• US Dollar bulls are getting support from the 20-period EMA at 0.9084.

The USD/CHF pair is not getting the bids required to deliver a rebound move of around 0.9080 in the Asian session. Pessimism in the Swiss Franc asset is the outcome of extended correction in the US Dollar Index (DXY). The USD Index has dropped further to near 102.40 as investors have digested anticipation of one more rate hike from the Federal Reserve (Fed), which is expected next month.

S&P500 futures are holding marginal gains in Asia after a light positive Monday, portraying mildly positive market sentiment. The US yields have dropped marginally amid extended corrections in the USD Index. The 10-year US Treasury yields have dropped below 3.41%.

For further guidance, United States Consumer Price Index (CPI) data will be keenly watched. Further softening in headline inflation is expected as oil prices have remained weaker in March.

USD/CHF has witnessed a correction after printing a weekly high of 0.91140. The Swiss Franc asset has corrected to near the breakout zone of the consolidation that happened on Monday. The 20-period Exponential Moving Average (EMA) at 0.9084 is providing support to the US Dollar bulls.

Meanwhile, the Relative Strength Index (RSI) (14) has slipped into the 40.00-60.00 range after observing exhaustion in the upside momentum.

For an upside move, the major needs to break above the round-level resistance of 0.9100  decisively, which will drive the major toward April 04 high at 0.9143 followed by March 31 high at 0.9178.

On the flip side, a downside move below April 04 low at 0.9040 will expose the Swiss Franc asset to psychological support at 0.9000 and a fresh 21-month low at 0.8930, which is 25 May 2021.

USD/CHF hourly chart