USD/CHF Rebounds from Key Support but Remains Under Pressure

USD/CHF is trading at 0.84629, having bounced off the critical support level at 0.83918, which has held firm since March 2024. The pair remains below the 20-day moving average at 0.8565, indicating that the overall bearish trend is still intact.

The recent rebound can be attributed to some short-term profit-taking and potential intervention by the Swiss National Bank, which closely monitors the franc's strength. However, the broader outlook remains cautious as the US dollar faces ongoing weakness due to expectations of Federal Reserve rate cuts later this year. The USD's struggles, combined with the franc's safe-haven appeal, are likely to keep the pair under pressure.

If USD/CHF can sustain above the 0.83918 support, we might see a temporary recovery toward 0.8500. However, a break below this key level could trigger further declines, potentially pushing the pair to test the 0.8300 mark.