USD/CHF Price Analysis: Rebounds from YTD lows, climbs above 0.8600 amid high US bond yields

• USD/CHF gained over 1% on Thursday, recovering from yearly lows around 0.8560 to trade at 0.8664.
• The uptrend was halted at the 23.6% Fibonacci (Fibo) retracement at 0.8667.
• To shift neutral, buyers must lift the USD/CHF towards the 61.8% Fibo retracement at 0.8830, facing key resistances at (38.2% and 61.8% Fibo levels.
• USD/CHF drop below 0.8600 could pave the way for a resumption of the downtrend.

The USD/CHF bounced from yearly lows and gained more than 1% on Thursday, courtesy of a risk-off impulse and higher US Treasury bond yields, which bolstered the greenback. Hence, as the US Dollar Index (DXY) rose, the USD/CHF recovered from around 0.8560 and exchanged hands at 0.8664.

USD/CHF Price Analysis: Technical outlook

The daily chart portrays the pair’s ongoing upward correction after registering year-to-date (YTD) lows of 0.8554. As sellers could not drag prices beneath 0.8550, that exacerbated the USD/CHF Thursday’s rally, breaking technical levels on its way up. The uptrend was capped at the 23.6% Fibonacci (Fibo) retracement at 0.8667.

If USD/CHF buyers would like to shift the bias to neutral, they need to lift the major towards the 61.80% Fibo retracement at 0.8830, but on its way north, they would face key resistance areas. Those are the 38.20% Fibo level at 0.8729, followed by the 50% Fibo at 0.8780. Conversely, if USD/CHF exchange rates drop below 0.8600, that could pave the way for resuming the downtrend.

USD/CHF Price Action – Daily chart