- USD/CHF is making efforts for a confident break above a five-week high at 0.9067.
- S&P500 dropped heavily on Wednesday as US default fears remain active due to a delay in agreement over the US borrowing cap.
- USD/CHF has entered into a markup phase after delivering a breakout of the Wyckoff Accumulation pattern.
The USD/CHF pair has turned sideways after a mild correction from 0.9060 in the Asian session. The Swiss Franc asset refreshed its five-week high at 0.9067 and is now gathering strength for extending the rally further.
S&P500 futures have added significant gains in early Tokyo. US equities dropped heavily on Wednesday as US default fears remain active due to a delay in agreement over the US borrowing cap. The US Dollar Index (DXY) is looking to capture the crucial resistance of 104.00 despite chances of a pause in the policy-tightening spell by the Federal Reserve (Fed) are sky-rocketing.
USD/CHF has entered into a markup phase after delivering a breakout of the Wyckoff Accumulation pattern formed on a four-hour scale. The Swiss franc asset is expected to display wider bullish ticks and heavy volume as bulls remain solid in the markup phase. Upward-sloping 20-period Exponential Moving Average (EMA) at 0.9000 is providing support to the US Dollar bulls.
A confident break into the bullish range of 60.00-80.00 by the Relative Strength Index (RSI) has strengthened US Dollar bulls further.
Going forward, a decisive break above May 24 high at 0.9067 will drive the asset toward the round-level resistance of 0.9100 followed by March 28 low at 0.9137.
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