The USD/CHF pair stumbles on Thursday, losing 0.34% during the North American session, as the Greenback’s six-day rally stalls amid falling US Treasury yields, despite a red-hot US Core PCE inflation reading. At the time of writing, the pair trades below the 0.8100 figure after reaching a YTD high of 0.8139 on Wednesday.
USD/CHF Price Forecast: Technical outlook
After rallying for six straight days, USD/CHF is forming a ‘tweezer-top’ bearish chart pattern, which could open the door for a retracement, with the 0.8000 figure being the first zone of interest.
Momentum remains bullish, though with the Relative Strength Index (RSI) edging above the 70 oversold level, a dip suggests sellers are stepping in.
Hence, USD/CHF might be headed for a short-term pullback. The first support is 0.8050, followed by 0.8000. A breach of the latter will expose the confluence of the June 17 daily low and the 200-day SMA at 0.7910.
On the upside, the first resistance for USD/CHF is 0.8100. If bulls reclaim that area, look for a test of the year-to-date high at 0.8139 ahead of challenging the 0.8200 mark.
USD/CHF Price Chart – Daily
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