The USD/CHF pair is demonstrating back-and-forth action around 0.8980 in the European session. The Swiss Franc asset is looking to recapture the psychological resistance of 0.9000 ahead of the Federal Reserve (Fed) chair Jerome Powell’s testimony.

S&P500 futures are holding significant losses ahead of the United States opening session after an extended weekend due to Juneteenth. The US Dollar Index (DXY) is showing a volatile action as investors are eager to know whether Fed Powell would stand to the interest rate guidance delivered in his monetary policy statement.

Meanwhile, the interest rate decision by the Swiss National Bank (SNB) is in focus. SNB Chairman Thomas J. Jordan is expected to raise interest rates by 25 basis points (bps) to 1.75% to avoid further increase in inflation.

USD/CHF rebounded firmly after dropping below the 61.8% Fibonacci retracement (plotted from May 04 low at 0.8820 to May 31 high at 0.9148) at 0.8945. The upside move in the Swiss Franc has found barricades near the 50% Fibo retracement at 0.8985.

The pair is trading below the 200-period Exponential Moving Average (EMA) at 0.912, which indicates that the long-term trend is still bearish.

Meanwhile, the Relative Strength Index (RSI) (14) has shifted into the 40.00-60.00 from the bearish range of 20.00-40.00. This indicates an attempt of a bullish reversal but will be confirmed only after placement in the bullish range of 60.00-80.00.

Should the asset break above the intraday high at 0.8986, US Dollar bulls will drive the asset towards a 38.2% Fibo retracement at 0.9023 followed by May 18 high at 0.9063.

In an alternate scenario, a downside move below the round-level support of 0.8900 will expose the asset to May 10 low at 0.8868. A slippage below the latter would drag the asset toward May 04 low at 0.8820