USD/CHF Price Analysis: Aims to Reclaim 0.9080 Despite US Dollar Index Weakness
Despite the sluggish USD Index, USD/CHF is attempting to reclaim the immediate resistance at 0.9080. Despite the positive GDP report for the first quarter, the supporters of the Swiss Franc faced intense selling pressure on Tuesday. Following the escape of the Wyckoff Accumulation pattern, USD/CHF is exhibiting a consolidation phase.

After a V-shaped recovery, the USD/CHF pair has turned sideways around 0.9060 in the early Asian session. Despite a lackluster performance by the US Dollar Index (DXY), the Swiss Franc is anticipated to reclaim the key resistance level at 0.9080.
The USD/CHF pair's strength despite the USD index's weakness indicates that Swiss Franc bulls are also feeble. Despite the publication of optimistic first-quarter Gross Domestic Product (GDP) data, the Swiss Franc bulls faced intense selling pressure on Tuesday. Annual GDP growth was in line with expectations at 0.6%, while quarterly GDP growth exceeded expectations by 0.3%.
Before the release of the United States Automatic Data Processing (ADP) Employment data, the US Dollar is expected to exhibit extreme volatility. In May, the US economy added 170,000 positions, a decrease from the previous month's gain of 296K. US Nonfarm Payrolls (NFP) will be released later on Friday, providing detailed information about the US labor market.
Following a breach of the Wyckoff Accumulation pattern on a four-hour time frame, USD/CHF is exhibiting a consolidation phase. As long as bulls maintain their strength during the markup phase, the Swiss franc asset is anticipated to exhibit larger bullish movements and high volume.
Currently, the Relative Strength Index (14) oscillates between 40.00 and 60.00, indicating a lackluster performance. A confident breach of the bullish range of 60.00-80.00 would strengthen bullish sentiment for the US Dollar.
A decisive break above the immediate resistance depicted by the May 30 high of 0.9084 will propel the asset toward the March 28 low of 0.9137 and then the round-level resistance of 0.9200 in the future.
In an alternative scenario, a decline below the low of May 16 at 0.8929 will drive the asset toward the low of April 14 at 0.8867. A decline below the low of April 14 will further drag the asset toward the Spring formation low of 0.8820 on May 4.
Bonus rebate to help investors grow in the trading world!