USDCHF Technical Analysis – Some days of relief for the greenback

Fundamental
Overview

The US Dollar this week has
been erasing some of the losses experienced last week after the benign US PPI
and the Trump’s reciprocal tariffs announcement. There hasn’t been any notable
catalyst this week to support the greenback although some analysts pointed to
less dovish comments from Fed’s Waller on Tuesday which would explain the rise
in Treasury yields afterwards.

On the CHF side, the Swiss CPI last week came in line with
expectations although the core measure increased. It didn’t change much for the
SNB, but the market scaled back the expectations for potential negative rates.

USDCHF
Technical Analysis – Daily Timeframe

USDCHF Daily

On the daily chart, we can
see that USDCHF bounced near the key 0.8960 support zone and pulled back into the broken trendline.
The sellers will likely step in around these levels to position for a break
below the support, while the buyers will want to see the price rising back
above the trendline to start targeting the 0.92 handle next.

USDCHF Technical
Analysis – 4 hour Timeframe

USDCHF 4 hour

On the 4 hour chart, we can
see that we have a minor upward trendline defining the pullback into the major trendline.
The buyers will likely lean on it to position for new highs, while the sellers
will look for a break lower to increase the bearish bets into the 0.8960
support zone.

USDCHF Technical
Analysis – 1 hour Timeframe

USDCHF 1 hour

On the 1 hour chart, we can
see that the sellers stepped in around the most recent lower high to position
for the pullback into the minor upward trendline. There’s not much else we can
add here as the buyers will look for a bounce, while the sellers will look for
a break. The red lines define the average daily range for today.