USD/CHF Price Analysis: Despite falling, buying pressure to push prices above 0.9500

• The USD/CHF fell on the back of US dollar weakness, losing 0.34% on Wednesday.
• Most G8 currencies printed gains against the greenback in the FX complex, as the DXY dropped 0.65%.
• USD/CHF Price Forecast: The dip towards 0.9460 found some buying pressure as bulls prepare for a renewed 0.9500 test.

The Swiss franc recovered some ground against the greenback, as the latter suffered losses dragged down by US Treasury yields, which also fell some nine basis points to 2.840%. At 0.9485, the USD/CHF portrays the aforementioned, down some 0.33%, back below the 0.9500 figure.

The market sentiment improved in the North American session. US equities rose, except for the Nasdaq Composite, which fell 1.22% on the drop of Netflix. In the FX complex, risk-sensitive currencies rose while safe-haven peers, like the CHF and the JPY, trimmed losses.

In the meantime, the US Dollar Index, a gauge of the greenback’s value against a basket of six currencies, edged down 0.65% and was last seen at 100.337.

During the day in the Asian session, the USD/CHF opened near 0.9530s yearly highs but dropped on what appears to be a profit-taking move by USD bulls, which triggered losses of the greenback against most G8 currencies across the board. In the case of the USD/CHF, it reached support some pips near the S1 daily pivot at 0.9460, then pushed towards the daily pivot around 0.9490.

USD/CHF Price Forecast: Technical outlook

The USD/CHF daily chart depicts the pair as upward biased. Given that the USD/CHF broke above the YTD high at 0.9460 and April’s 1, 2021 cycle high at 0.9472, it opened the door for a move towards 0.9500 and beyond. Furthermore, it’s worth noting that Wednesday’s dip found some buying pressure near the 0.9460 area, which lifted the pairs towards 0.9490, opening the door for further USD/CHF upside.

With that said, the USD/CHF first resistance would be the figure at 0.9500. A break above would pave the way towards June 30, 2020, a cycle high at 0.9533. A breach of the latter would expose the 0.9600 mark, followed by June 5, 2020, a daily high at 0.9650.

Key Technical Levels