The majority of G8 currencies posted gains against the greenback during the FX complex. However, the DXY fell 0.65%.
USD/CHF Forecast: Bulls are preparing for a new 0.9500 test. This caused some buying pressure.
The Swiss franc gained some ground against the greenback after it suffered losses due to the US Treasury yields which fell nine basis points to 2.840%. The USD/CHF is at 0.9485 and shows the same, down about 0.33% from the 0.9500 figure.
In the North American session, market sentiment improved. The US equity rose except for the Nasdaq Composite which fell 1.22% due to Netflix's drop. Risk-sensitive currencies increased in the FX complex while safer-haven peers like the CHF or the JPY saw losses decrease.
The US Dollar Index, which measures the greenback's worth against six currencies, fell 0.65% in the interim. It was last seen at 100.337.
The USD/CHF closed at 0.9530s annual highs during the Asian session but fell on what appears to have been a profit-taking move of USD bulls. This caused losses for the greenback against all G8 currencies. The USD/CHF reached support at the S1 daily pivot of 0.9460 and then moved towards the daily pivot at 0.9490.
USD/CHF Forecast: Technical outlook
The USD/CHF daily chart shows the pair as being upward biased. The USD/CHF broke above its YTD high of 0.9460 and April's 1,2021 cycle high of 0.9472, opening the doors to a move towards 0.9500 or beyond. It's also worth noting Wednesday's dip saw some buying pressure in the 0.9460 region, lifting the pairs to 0.9490. This opens the door for USD/CHF further upside.
The USD/CHF first resistance figure would be at 0.9500. Breaking above would open the door to June 30, 2020, when there will be a high of 0.9533. The 0.9600 mark would be breached, and then the June 5, 2020 daily high of 0.9650.