The pair extends gains for a second day as geopolitical risks and Fed rate hike bets lift the USD Index to a six-week peak.
The USD/CHF pair climbed to a three-week high near 0.7900 in early European trading, extending gains for a second consecutive session. A firmer US Dollar, supported by persistent geopolitical tensions and hawkish Federal Reserve expectations amid inflation concerns, drove the move. The USD Index (DXY) held near a six-week high, reinforcing the pair’s upward momentum.
Technical indicators suggest cautious optimism, with the MACD histogram turning positive but the Relative Strength Index (RSI) remaining around 58, signaling limited upside potential. The pair remains below its 200-day Exponential Moving Average (EMA), capping broader gains. Resistance is seen near 0.7915-0.7920, with further hurdles at 0.7936 and 0.7956.
Traders await the release of FOMC Minutes later today, which could influence further USD moves. Downside support is pegged near the 50% Fibonacci retracement level of the March-May decline.