USD/CHF Price Analysis: Bears in control and eye downside extension

• USD/CHF bears in control below key resistance.
• US Dollar offered as Fed bets of a hold are firm.

The US Dollar slid again on Thursday but remained near three-month highs although there are bets that the Federal Reserve, which may have more work to do to combat inflation, could indeed hold this month.

DXY, hit a 2-week low as the Federal Reserve is now expected to leave interest rates unchanged when its policy committee meets next week. The CME Fedwatch tool is seeing only a 25% probability that the central bank will raise rates again.

This leaves the USD/CHF hanging and well offered with more downside on the cards if the bears stay in control below resistance as the following illustrates:

USD/CHF H1 chart