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  • USD/CHF is struggling to make a decisive move in either direction.
  • US Dollar Index stays relatively qıuiet above 93.00.
  • Investors await US data, US President Biden’s infrastructure plan.

The USD/CHF pair edged lower toward 0.9400 in the early trading hours of the European session but managed to reverse its direction. As of writing, the pair was up 0.2% on the day at 0.9440.

The broad-based USD strength on the back of surging US Treasury bond yields allowed USD/CHF to close in the positive territory on Tuesday. Although the pair extended its rally during the Asian trading hours and touched its highest level since July at 0.9447 on Wednesday, the subdued trading action ahead of the Easter holiday is making it difficult for USD/CHF to find direction.

On the other hand, the US Dollar Index, which reached a fresh multi-month high of 93.43 earlier in the day, is moving sideways around 93.20 as investors await the ADP Employment Change data and US President Joe Biden’s infrastructure plan.  

Meanwhile, the 10-year US Treasury bond yield is up more than 1% on a daily basis but stays below the key 1.75% mark. If the 10-year T-bond yield manages to reclaim that level, the USD could start outperforming its rivals and help USD/CHF push higher.  

USD/CHF technical outlook

Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, thinks that the USD/CHF could target the mid-July high at 0.9467 after overcoming the 0.9421 hurdle.  

“Further up sits the 50% retracement of the 2019-2021 decline at 0.9499. Our medium-term upside target is the 200-week ma at 0.9663,” Rudolph added.  “Slips should find support around the 0.9375 March 9 high and also around the 38.2% Fibonacci retracement at 0.9324 below which the September high can be spotted at 0.9296.”  

Additional levels to watch for