USD/CHF bounce faces 0.8350 test – Société Générale

USD/CHF is attempting a modest rebound from 0.8030, but remains below key resistance at 0.8350, keeping the broader downtrend intact, Société Générale's FX analysts note.

Downtrend intact below key resistance

"USD/CHF has experienced a steady downtrend after giving up the 50-DMA in February. It has carved out an interim trough near 0.8030, which has been revisited recently. The pair is staging a bounce after this test however it is still below the Moving Average."

"Multi-month descending trend line at 0.8350 is a short-term resistance. If the bounce peters out near this hurdle, the phase of decline may persist. Break below 0.8030 can lead to an extension in downtrend."