- USD/CHF remains sidelined around a 2-year high amid a pre-Fed trading lull.
- Formation of bearish candlesticks, RSI conditions hint at profit booking moves.
- A bullish chart pattern, the 10-DMA could challenge the bears.
USD/CHF bulls are running out of steam in a 15 pip trading zone surrounding the highest levels since April 2020 at the start of Wednesday.
In doing so, the Swiss currency pair (CHF) respects the bearish candlestick formation of the previous day, namely the “Hanged Man”, as well as the overbought conditions of the RSI.
However, a month-old ascending trend channel could challenge the USD/CHF bears unless the quote breaks below the support at 0.9733.
Even if the pair defies the formation of the bullish channel, the 10-DMA level surrounding 0.9680 will act as an additional filter to the south before welcoming the bears.
Meanwhile, the April 2020 high near 0.9805 will act as an immediate bullish filter on further advances in the USD/CHF pair.
Then, the resistance line of the aforementioned channel and the March 2020 high, around 0.9875 and the 0.9900 threshold respectively, will be in focus.
Overall, USD/CHF prices should pare some gains, but the bears still have a long way to go before they regain control.
USD/CHF: daily chart
Trend: expected decline