- USD / CHF is witnessing some selling for the third day in a row on Wednesday.
- A subdued action around the USD seems to be the only factor putting some pressure.
- A combination of factors should help limit losses before the FOMC’s key decision.
The pair USD/CHF has moved lower during the first half of the European session on Wednesday and has fallen to four-day lows around the 0.9220 region in the last hour.
The pair has extended the fall of this week’s retracement, from the 0.9330-35 region, the highest level since April 6, and has seen some continuation selling for the third day in a row on Wednesday. The decline lacks an obvious catalyst and could be attributed solely to a subdued action in the price of the US dollar amid a repositioning trade before the FOMC’s crucial monetary policy decision.
That said, a combination of factors could extend some support to the USD / CHF pair and help limit any deeper losses ahead of the central bank key event. Expectations of an imminent Fed announcement should continue to act as a tailwind for the USD. This, in turn, should prevent investors from opening aggressive bearish positions around the pair. amid risk appetite in markets tending to weigh on demand for safe haven Swiss franc.
The Chinese real estate giant Evergrande Group it has said it would pay interest on the bonds due Thursday and has boosted global risk sentiment. This has been evident by a positive tone around the stock markets. Therefore, it will be wise to wait for some continuation selling before confirming that the USD / CHF pair has already found a high in the near term.
The market’s focus remains on the outcome of the two-day FOMC monetary policy meeting. The investors will look for clues about the probable timing of the Fed’s tapering plan. Apart from this, the latest economic projections, especially the so-called dot chart, will influence the USD price dynamics and could generate a new directional momentum to the USD / CHF pair.
USD / CHF technical levels
USD/CHF
| Panorama | |
|---|---|
| Today’s Last Price | 0.9223 |
| Today’s Daily Change | -0.0013 |
| Today’s Daily Change% | -0.14 |
| Today’s Daily Opening | 0.9236 |
| Trends | |
|---|---|
| SMA of 20 Daily | 0.9192 |
| SMA of 50 Daily | 0.9166 |
| SMA of 100 Daily | 0.9122 |
| 200 SMA Daily | 0.9096 |
| Levels | |
|---|---|
| Daily Previous Maximum | 0.9284 |
| Daily Previous Minimum | 0.9225 |
| Weekly Preview Maximum | 0.9325 |
| Weekly Prior Minimum | 0.9164 |
| Monthly Previous Maximum | 0.9242 |
| Minimum Previous Monthly | 0.9019 |
| Daily Fibonacci 38.2% | 0.9248 |
| Daily Fibonacci 61.8% | 0.9261 |
| Daily Pivot Point S1 | 0.9213 |
| Daily Pivot Point S2 | 0.919 |
| Daily Pivot Point S3 | 0.9155 |
| Daily Pivot Point R1 | 0.9271 |
| Daily Pivot Point R2 | 0.9307 |
| Daily Pivot Point R3 | 0.933 |
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