USD/CHF is under pressure in Asia as US index futures are flashing red. The pair has created a bear flag or a bearish continuation pattern on the 4-hour chart. USD/CHF is currently trading at 0.9364, representing a 0.38% drop on the day, having failed to chew through offers around 0.94 during the overnight trade.

The Swiss National Bank (SNB) retains the ability to wage currency market interventions if necessary,  Martin Schlegel, one of the SNB’s alternate governing board members, said on Wednesday, according to Bloomberg.

EUR/CHF is looking oversold, as per key daily chart indicator. The hourly chart is reporting a triangle breakout. A corrective bounce to the 5-day average hurdle could be in the offing. EUR/CHF is looking to regain some poise from three-year lows reached on Wednesday.

EUR/CHF is trading at 33-month lows near 1.0759. The US added Switzerland to its current manipulators’ list. The SNB removed the cap on the euro on Jan. 15, 2015. Five years after the Swiss National Bank (SNB) shocked the financial markets by abandoning the euro cap, the Swiss Franc is trading at 33-month highs against the single currency. 

The US Treasury on Monday added Swiss Franc (CHF) back to its currency watch list and urged Switzerland to adjust its macroeconomic policies to more forcefully support domestic economic activity, according to Bloomberg. 

EUR/CHF is looking north, having bounced up from key MA support. The 4-hour chart indicators are also reporting bullish conditions. EUR/CHF is better bid at 1.1030 press time and could challenge the Oct. 17 high of 1.1059 in the next 24 hours. 

EUR/CHF risk reversals have jumped to the levels last seen in May. Risk reversals indicate the demand for call options is rising. Risk reversals on EUR/CHF (EURCHF1MRR), a gauge of calls to put, jumped to the highest level since May on Friday, indicating the investors are adding bets to position for a rally in the common currency.