USD/CHF Price Analysis: Refreshes eight-year low around 0.8550

• USD/CHF struggles to maintain an auction above 0.8550 amid positive market sentiment.
• A power-pack action is expected in the USD Index amid the release of the US GDP data.
• USD/CHF is looking for a cushion near the horizontal support plotted around 0.8557.

The USD/CHF pair is struggling to maintain auction after printing a fresh eight-year low around 0.8552 in the European session. The Swiss Franc asset is facing pressure as the market mood is extremely upbeat amid expectations that interest rates by the Federal Reserve (Fed) are pealed for the entire year.

S&P500 futures have generated significant gains in London as fears of a recession in the United States economy have faded significantly. The US Dollar Index (DXY) has extended its sell-off to near 100.60 and is expected to continue its downside move.

A power-pack action is expected in the USD Index amid the release of the US Gross Domestic Product (GDP) data, which will release at 12:00 GMT.

USD/CHF is looking for a cushion near the horizontal support plotted from July 18 low around 0.8557 on an hourly scale. The 20-period Exponential Moving Average (EMA) at 0.8594 is acting as a barricade for the US Dollar bulls.

The Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-40.00, which indicates that the downside momentum is active.

Should the asset break below immediate support of 0.8557, Swiss Franc bulls would drag the asset to a fresh eight-year low near round-level support at 0.8500. A slippage below the latter would further drag the asset toward Jun 2011 low at 0.8275.

In an alternate scenario, a confident break above July 24 high at 0.8700 would drive the asset toward a 20-day EMA at 0.8750 followed by July 12 high around 0.8800.

USD/CHF hourly chart