USD/CHF attempts a break above 0.9280 as risk-off mood solidifies ahead of FOMC minutes


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  • USD/CHF is aiming to deliver a break above 0.9280 amid the risk aversion theme.
  • Rising odds of more rates announcement by the Fed in its March monetary policy meeting are fueling US Treasury yields.
  • The Swiss Franc asset has successfully tested the breakout of the downward-sloping trendline from 0.9600.

The USD/CHF pair is gathering strength to deliver a break above 0.9280 in the early Asian session. The Swiss franc asset is struggling to deliver more gains despite the risk aversion theme underpinned by the market participants.

An upbeat preliminary United States S&P PMI (Feb) data cleared that the economic activities are getting expansionary again, which could be the result of a rebound in consumer spending. This led to a sheer fall in the risk-perceived assets as expansionary economic activities support a hawkish view from the Federal Reserve (Fed).

S&P500 futures offer mild gains in the early Tokyo session. However, the overall sentiment is still risk-off. The US Dollar Index (DXY) struggles to extend gains above 103.90. However, the upside looks favored as volatility in the FX domain might remain high ahead of the Federal Open Market Committee (FOMC) minutes. Rising odds of more rates announcement by the Fed in its March monetary policy meeting are fueling US treasury yields. The return on 10-year bonds has jumped to near 4%.

On the Swiss Franc front, the commentary from Swiss National Bank (SNB) Vice Chairman Martin Schlegel failed to strengthen the Swiss franc. SNB Schlegel cited the central bank is "still willing" to be active in the foreign currency markets in pursuing its goal of price stability.

USD/CHF technical outlook

USD/CHF has successfully tested the breakout of the downward-sloping trendline placed from November 21 high around 0.9600 on a four-hour scale. Usually, a successful test of a trendline breakout without solid downside pressure indicates the strength of bulls and prepares a platform for a confident upside move ahead.

The Swiss Franc asset has confidently shifted its auction above the 200-period Exponential Moving Average (EMA) at 0.9245.

Meanwhile, the Relative Strength Index (RSI) (14) aims to enter the bullish range of 60.00-80.00.

USD/CHF four-hour chart

USD/CHF

Overview
Today last price 0.9277
Today Daily Change 0.0045
Today Daily Change % 0.49
Today daily open 0.9232
 
Trends
Daily SMA20 0.9213
Daily SMA50 0.9248
Daily SMA100 0.9487
Daily SMA200 0.9582
 
Levels
Previous Daily High 0.9265
Previous Daily Low 0.9221
Previous Weekly High 0.9332
Previous Weekly Low 0.9138
Previous Monthly High 0.941
Previous Monthly Low 0.9085
Daily Fibonacci 38.2% 0.9238
Daily Fibonacci 61.8% 0.9248
Daily Pivot Point S1 0.9213
Daily Pivot Point S2 0.9195
Daily Pivot Point S3 0.9169
Daily Pivot Point R1 0.9258
Daily Pivot Point R2 0.9284
Daily Pivot Point R3 0.9302

 

 

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