USD/CHF Price Analysis: Rebounds from above 0.9000 as FOMC comes into picture

• USD/CHF has displayed a recovery move from 0.9010 as investors await cues from FOMC minutes about interest rate guidance.
• Headlines over the US debt-ceiling issues will remain in focus as the long-term credibility of the US economy is on the line.
• USD/CHF has delivered a breakout of the Wyckoff Accumulation pattern and is in a markup phase.

The USD/CHF pair has witnessed some recovery from the immediate support of 0.9010 in the Asian session. The Swiss Franc asset has rebounded after building a base around 0.9010 as investors are shifting their focus toward the release of May’s meeting Federal Open Market Committee (FOMC) minutes.

The release of the FOMC minutes will provide a detailed explanation behind the interest rate hike of 25 basis points (bps) by Federal Reserve (Fed) chair Jerome Powell. Also, investors will look for cues about interest rate guidance. However, Fed Powell has already advocated for a pause in the policy-tightening spell in June.

Meanwhile, the US Dollar Index (DXY) is showing a subdued performance in the Asian session. Investors will keep an eye on further developments over the US debt-ceiling issues as the long-term credibility of the United States economy is on the line.

USD/CHF has delivered a breakout of the Wyckoff Accumulation pattern formed on a four-hour scale. The Swiss franc asset is in a mark-up phase which displays wider bullish ticks and heavy volume. Upward-sloping 20-period Exponential Moving Average (EMA) at 0.9000 is providing support to the US Dollar bulls.

A confident break into the bullish range of 60.00-80.00 by the Relative Strength Index (RSI) will strengthen US Dollar bulls further.

Going forward, a decisive break above May 18 high at 0.9063 will drive the asset toward the round-level resistance of 0.9100 followed by March 28 low at 0.9137.

In an alternate scenario, a downside move below May 16 low at 0.8929 will drag the asset toward April 14 low at 0.8867. A slippage below April 14 low will further drag the asset toward the Spring formation around May 04 low at 0.8820.

USD/CHF four-hour chart