USDCHF bearish pennant breakdown stalls, consolidation continues

USDCHF is trading at 0.8485, with the anticipated bearish pennant breakdown failing to materialize as expected. The pair has entered a consolidation phase after testing support at 0.8470, unable to sustain downward momentum below this key level. US Treasury yields remain elevated, with the 10-year at 4.02% providing underlying dollar support against the safe-haven franc. Technical indicators show mixed signals - while the pennant pattern suggested bearish continuation, buyers have defended the 0.8470 support zone aggressively. The 200-day moving average at 0.8510 now acts as immediate resistance. Swiss National Bank officials maintain their watchful stance on franc strength, though intervention risks appear limited at current levels. A decisive break below 0.8470 would target 0.8420, while recovery above 0.8510 could extend toward 0.8550. Traders await Friday's US inflation data for clearer directional catalysts.