Anna 
The USD/CHF pair sees a modest uptick above 0.8850 during the European session on Tuesday, with market participants adopting a cautious stance ahead of Federal Reserve (Fed) Chair Jerome Powell’s congressional testimony and the release of United States Nonfarm Payrolls (NFP) data later in the week.
The Swiss Franc maintains its upward momentum as the US Dollar Index (DXY) rebounds from a two-day low around 103.70. Investors eagerly await insights from Fed Powell’s remarks, which could shed light on the timeline for potential interest rate reductions.
Despite the Swiss Franc experiencing buying interest, especially with the annual Consumer Price Index (CPI) surpassing expectations in February, the USD/CHF pair remains resilient. February’s monthly CPI surged by 0.6%, exceeding January’s 0.2%, contributing to a higher-than-anticipated annual CPI of 1.2%. The Swiss National Bank (SNB) is currently in the process of selecting a successor for Chairman Thomas J. Jordan, with the announcement expected in the second half of the year.
From a technical perspective, the USD/CHF pair faces resistance as it attempts to break out of a consolidation range between 0.8744 and 0.8898 on a four-hour timeframe. Although a slight pullback near the upper end of the consolidation doesn’t imply a reversal, it suggests that further bullish momentum is required for a decisive breakout. The 50-period Exponential Moving Average (EMA) near 0.8822 continues to provide support to US Dollar bulls.
The 14-period Relative Strength Index (RSI) has climbed above 60.00, indicating a potential emergence of bullish momentum if it sustains above this level. A decisive break above the three-month high at 0.8900 could pave the way for further upside towards key levels at 0.8932 and 0.8976.
Conversely, a breakdown below the support at February 13’s low of 0.8746 may expose the asset to the round-level support at 0.8700, followed by the high around 0.8650 from February 1.
As the USD/CHF pair navigates these levels, traders are advised to monitor developments closely for potential shifts in market dynamics.
