Ella 
USD/CHF: Still struggling amid uncertainty over Fed policy outlook
During the European session, the USD/CHF currency pair showed a subversive trend in the range of 0.8940-0.8960. USD/CHF has turned range-bound amid uncertainty over the outlook for monetary policy from the Federal Reserve (FED).
S&P 500 futures handed over some gains, however, overall market sentiment was quite bullish as investors shifted their focus from fears of a global recession to the upcoming quarterly earnings season.
The U.S. dollar index (DXY) is in a correction phase and has fallen to around 102.50. Investors should note that the downside momentum in the US dollar index is weak, depicting a new trigger point that investors are waiting for further guidance.
USD/CHF is struggling to hold itself above the 61.8% Fibonacci retracement level of the four-hour chart (from the May 4 low of 0.8820 to the May 31 high of 0.9148) around 0.8946. The 50-period exponential moving average (EMA) at 0.8967 is acting as a hurdle for the dollar bulls.
Range-bound relative strength index (RSI) (14) in the 40.00-60.00 area suggests a sideways performance.
Looking ahead, a break below the May 12 low around 0.8900 would see USD/CHF facing eventual support at the April 13 low at 0.8860 and then the May 4 low at 0.8820.
In another scenario, a break above the psychological resistance at 0.9000 would dilute the bearish bias and push USD/CHF towards the June 6 low at 0.9033 and the May 30 high at 0.9084.
