USD/CHF Price Analysis: Posts slight gains despite bullish hurdles; faces resistance at 0.8980

• USD/CHF records minor gains and struggles to rally past 0.8980 due to weak buying momentum.
• Technical indicators point towards a neutral to downward bias, with immediate support at a May 22 low of 0.8940.
• RSI and three-day Rate of Change indicate downward bias; a fall below 0.8940 could lead to further losses.

USD/CHF registers minuscule gains as the Asian session begins after printing back-to-back bullish days, though it failed to cement a rally past the 0.8980 area. On Monday, the USD/CHF printed a weekly high at 0.8975 but closed the session at around 0.8950. At the time of writing, the USD/CHF exchanges hands at 0.8957.

USD/CHF Price Analysis: Technical outlook

From a technical perspective, the USD/CHF is neutral to downward biased,  as it stands below the daily Exponential Moving Averages (EMAs). The downtrend shows signs of losing steam, though price action in the last couple of days left two candlesticks with larger wicks above the natural body. This signifies that buyers did not have the strength to hold prices higher, opening the door for further losses.

The USD/CHF first support would be the May 22 low at 0.8940. Break below, and the USD/CHF would dive toward the June 16 daily low at 0.8902 before cracking 0.8900. A breach of the latter will expose the YTD low of 0.8819. Conversely, USD/CHF's immediate resistance lies at 0.8980, June 9 low, before testing 0.9000.

Oscillators-wise, the Relative Strength Index (RSI) indicator portrays the pair as downward biased, though the three-day Rate of Change depicts buyers who stepped in but failed to break the previous peak.

USD/CHF Price Action – Daily chart