The currency pair climbs past key resistance levels, supported by higher US Treasury yields and a bullish technical outlook.
USD/CHF advanced more than 0.58% on Tuesday, breaking above its 50-day Simple Moving Average at 0.7868. The pair now trades at 0.7890, nearing the 0.7900 mark, driven by a bullish engulfing pattern on daily charts.
The recovery follows a drop to a nearly three-month low of 0.7755 on May 8. Strength in the US Dollar, fueled by elevated Treasury yields, has pushed the DXY to five-week highs, bolstering the pair’s momentum. The Relative Strength Index signals further upside potential.
If buyers breach 0.7900, the next resistance lies at the 200-day SMA of 0.7916, with a move beyond targeting 0.8000 and the January 15 high of 0.8041.