Ella 
In the European market on Wednesday, USD/CHF remained on the defensive around 0.8780, and USD/CHF will try to maintain a five-week-old upward trend. That said, the latest move in USD/CHF is unlikely to have anything to do with the cautious sentiment ahead of the Fed minutes.
From a technical point of view, the downtrend resistance line from May 31 (0.8820 at press time) has also become a target for bulls, even if USD/JPY maintains the momentum of breaking above the 200 simple moving average last week. During this period, USD/CHF failed to verify that the RSI (14) was up and not overbought.
Therefore, USD/CHF may try to break through the 0.8820 mark again, and after the breakthrough, it may approach the mid-June shock low around 0.8900.
However, the 50% Fibonacci level and the 61.8% Fibonacci retracement level of the May-July downtrend (around 0.8850 and 0.8920 respectively) will act as further resistance to the upside.
On the downside, the confluence of the 200 simple moving average and the three-week rising trend line at 0.8745 will become a key short-term support.
If the Fed minutes disappoint USD bulls and push USD/CHF below the 0.8745 support confluence, USD/CHF could not be ruled out towards the 0.8700 round-figure mark and a drop to last month’s multi-year low near 0.8550 prospect.
