USD/CHF remains near session lows as greenback struggles to recover
|Following the FOMC meeting minutes, the USD/CHF pair quickly fell to a new session low at 0.9736. After the initial reaction, the pair corrected towards the mid 0.97s but came back under pressure again as the greenback continues to struggle to recover its losses against its competitors. As of writing, the pair is at 0.9739, losing 0.22% on the day.
As the investors continue to assess the minutes from the latest FOMC meeting, the US Dollar Index is having a difficult time moving away from its session low of 96.99. At the moment, the index is at 97.01, losing 0.28% on the day.
Although the probability of a June rate hike rose above 80% according to the CME Group FedWatch, members of the FOMC sounded cautious regarding the future rate hikes, as they made it clear that they need to see more upbeat data to confirm the recent slowdown in the economic activity was transitory. Furthermore, they presented a plan to to set gradually increasing limits on balance sheet reinvestment starting in 2017.
Despite today's movement, the pair remains in its weekly trading range, unable to make a determined move to set a short-term direction. Dallas Fed President Kaplan's speech will be next in line in the early trading hours of the Asian session.
Technical outlook
The initial support for the pair aligns at 0.9700 (psychological level/May 23 low) followed by 0.9640 (Sept. 29 low) and 0.9600 (psychological level). On the upside, resistances could be seen at 0.9775 (daily high), 0.9850 (May 17 high) and 0.9900 (psychological level).
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