USD/CHF Price Analysis: Gains but fell short of parity at around 0.9960s

• The USD/CHF consolidates around 0.9930s, up 0.47% in the day as traders prepare to attack the parity.
• Elevated US Treasury yields and a risk-off mood boost the greenback.
• USD/CHF Price Forecast: Negative divergence between RSI’s and price action might open the door for a dip towards 0.9700.

The USD/CHF retreated from YTD highs around 0.9960s as traders got ready to launch an assault toward the parity, but a negative market mood and USD traders booking profits were the main reason that kept the USD/CHF around the 0.9900 mark. At the time of writing, the USD/CHF is trading at 0.9932.

Monday’s headline lies in high US Treasury yields, as the 10-year benchmark note struck a four-year high in the last week, though as of writing sits at 3.075%. Furthermore, China’s exports slowed to single digits, the weakest in almost two years, as tighter and wider coronavirus curbs halted factory production and crimped domestic demand, adding to broader economic woes.

On Monday, the USD/CHF opened in the Asian session below the 0.9900 mark, but market sentiment increased appetite for the greenback, which pushed above the R2 daily pivot at 0.9930, just shy of the R3 pivot point at around 0.9970.

USD/CHF Price Forecast: Technical outlook

The USD/CHF daily graph maintains the pair as upward biased, though USD/CHF traders taking profits caused a slight dip toward 0.99030s. The Relative Strength Index (RSI), around 82.29, aims slightly down, meaning that a negative divergence between RSI and price action will happen.

The USD/CHF first support would be 0.9900. Break below would expose essential demand levels, like April 2020 swing high at around 0.9802, followed by 0.9700. Upwards, the major’s first resistance would be, May 9 daily high at 0.9965. A breach of the latter would expose the parity.