- USD/CHF is looking to recapture the immediate resistance of 0.9080 despite the subdued USD Index.
- The Swiss Franc bulls witnessed immense selling pressure on Tuesday despite the release of upbeat Q1 GDP.
- USD/CHF is demonstrating a consolidation phase after delivering a breakout of the Wyckoff Accumulation pattern.
The USD/CHF pair has turned sideways around 0.9060 in the early Asian session after a V-shape recovery. The Swiss Franc asset is expected to recapture the crucial resistance of 0.9080 despite a subdued performance by the US Dollar Index (DXY).
Strength in the USD/CHF pair despite the sluggish USD index indicates that the Swiss Franc bulls are also weak. The Swiss Franc bulls witnessed immense selling pressure on Tuesday despite the release of upbeat Q1 Gross Domestic Product (GDP) data. Annual GDP matched expectations at 0.6% while quarterly GDP expanded by 0.3% while the street was anticipating an expansion of 0.1%.
Sheer volatility is anticipated from the US Dollar ahead of the release of the United States Automatic Data Processing (ADP) Employment data will be keenly watched. As per the consensus, the US economy added 170K jobs in May, lower than the prior addition of 296K. Later on Friday, US Nonfarm Payrolls (NFP) will release, which will provide comprehensive information about the US labor market.
USD/CHF is demonstrating a consolidation phase after delivering a breakout of the Wyckoff Accumulation pattern formed on a four-hour scale. Broadly, the Swiss franc asset is expected to display wider bullish ticks and heavy volume as bulls remain solid in the markup phase.
Currently, Relative Strength Index (RSI) (14) is oscillating in the 40.00-60.00 range, which indicates a lackluster performance. A confident break into the bullish range of 60.00-80.00 would strengthen US Dollar bulls.
Going forward, a decisive break above the immediate resistance plotted on May 30 high at 0.9084 will drive the asset toward March 28 low at 0.9137 followed by the round-level resistance of 0.9200.
In an alternate scenario, a downside move below May 16 low at 0.8929 will drag the asset toward April 14 low at 0.8867. A slippage below April 14 low will further drag the asset toward the Spring formation around May 04 low at 0.8820.
USD/CHF four-hour chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks

EUR/USD tests daily lows near 1.0350 on NFP
The buying bias in the Greenback gathers extra pace on Friday after the US economy created fewer jobs than initially estimated in January, dragging EUR/USD to the area of new lows near 1.0350.

GBP/USD flirts with daily lows near 1.2420, Dollar picks up pace
The continuation of the rebound in the US Dollar motivates GBP/USD to accelerates its losses and revisit the 1.2420 area, or daily lows, following the release of US NFP in January.

Gold tests fresh lows near $2,860 after NFP
Gold prices trim their early advance on Friday, deflating to the vicinity of the $2,860 region per ounce troy following the publication of the US labour market report in January.

Key takeaways from the January Payrolls report
The January payrolls number was weaker than expected at 143k, vs a reading of 175k. However, to counteract the downside surprise in the NFP number, the unemployment rate fell to 4% from 4.1%, and average wage data jumped by 0.5% on the month, to 4.1%, the market had been looking for a decline to 3.8%.

Top Trumps: The global economy’s House of Cards
The year has barely started and we are learning the hard way what Donald Trump’s second term in office means for markets, analysts and global policymakers. It's like living through an episode of the political thriller, House of Cards.

The Best Brokers of the Year
SPONSORED Explore top-quality choices worldwide and locally. Compare key features like spreads, leverage, and platforms. Find the right broker for your needs, whether trading CFDs, Forex pairs like EUR/USD, or commodities like Gold.