USD/CHF Price Analysis: Bulls lurk behind fortnight-old support near 0.8950

• USD/CHF snaps three-day winning streak but struggles to defend bears.
• 200-HMA, two-week-long rising support line restrict immediate downside.
• Downward-sloping trend line from Monday challenges recovery moves ahead of top-tier US data.
• SNB’s Maechler teases further rate hikes, Fed’s 25 bps rate increase in July appears almost given.

USD/CHF pares intraday losses, the first in four, as it prods the 200-HMA amid the early hours of Thursday’s European session. In doing so, the Swiss Franc (CHF) pair justifies hawkish comments from Swiss National Bank (SNB) governing board member, Andrea Maechler, as well as cheers the broad US Dollar retreat. That said, the major currency pair bounces off an intraday low of 0.8965 to 0.8970 by the press time.

Earlier in the day, SNB’s Maechler said that the SNB does not rule out further rate hikes, per Reuters.

On the other hand, hawkish Federal Open Market Committee (FOMC) Minutes for the June meeting challenge the USD/CHF pair, which in turn justifies the quote’s rebound from the 200-Hour Moving Average (HMA) of around 0.8965.

However, the USD/CHF pair’s recovery needs validation from the weekly resistance line, close to 0.8995, as well as the 0.9000 round figure, to convince the buyers. Additionally important to watch will be today’s US ISM Services PMI and ADP Employment Change for June, as well as China headlines and recession woes.

Meanwhile, an upward-sloping support line from June 22, around 0.8950 by the press time, appears a tough nut to crack for the USD/CHF bears. Following that, it can slump to the yearly low, marked in June at around 0.8900.

USD/CHF: Hourly chart

Trend: Limited downside expected