USD/CHF Price Analysis: Defends downside near 0.8960 ahead of Fed’s Beige Book release

• USD/CHF is making efforts for recovery after defending the critical support of 0.8960.
• S&P500 futures have shown nominal losses in Asia amid anxiety over earnings data.
• Fed Bostic favored one more rate hike and then holding them above 5% for some time.

The USD/CHF pair is eyeing a recovery after building a base around 0.8960 in the Asian session. The Swiss Franc asset has been defending the aforementioned support for the past two trading sessions. An attempt of recovery by the US Dollar Index (DXY) after correcting to near 101.65 has infused some strength in the Swiss Franc asset.

S&P500 futures have shown nominal losses in Asia amid anxiety over earnings data, portraying a cautionary market mood. The USD Index has rebounded above 101.70 and is expected to add gains ahead amid deepening hawkish Federal Reserve (Fed) bets.

Atlanta Fed Bank President Raphael Bostic said he favors raising interest rates one more time and then holding them above 5% for some time to curb inflation that remains too high, as reported by Bloomberg.

For further guidance, investors are awaiting the release of the Fed’s Beige Book, which will convey the current economic situation of 12 Fed districts.

USD/CHF has sensed barricades at 23.6% Fibonacci retracement (placed from March 08 high at 0.9439 to April 13 low at 0.8860) around 0.9000 on a two-hour scale. The recovery move by the Swiss Franc asset will get strengthened if it manages to climb above the 23.6% Fibo retracement.

The 20-and 50-period Exponential Moving Averages (EMAs) are on the verge of delivering a bullish crossover around 0.8966.

Meanwhile, the Relative Strength Index (RSI) (14) is making efforts for shifting its oscillation in the bullish range of 60.00-80.00.

Should the asset decisively breaks above the 23.6% Fibo retracement around 0.9000, US Dollar bulls will drive the asset towards April 07 low at 0.9034 followed by 38.6% Fibo retracement plotted at 0.9082.

Alternatively, a downside move below April 17 low at 0.8922 will drag the asset toward April 13 low at 0.8860. A slippage below the latter will expose the asset to the round-level support at 0.8800.

USD/CHF two-hour chart