USD/CHF hangs near 3-month lows ahead of US CPI, FOMC

USD/CHF pair gained some traction earlier today amid a modest USD uptick.
Persistent trade-related uncertainties kept a lid on the attempted recovery.
Wednesday’s key focus will remain on the highly anticipated FOMC decision.

Haresh Menghani FXStreet

The USD/CHF pair failed to capitalize on its early modest uptick and is currently placed in the neutral territory, well within the striking distance of over three-month lows.

A modest pickup in the US dollar demand helped the pair to gain some traction during the early part of Wednesday trading action, albeit a combination of factors kept a lid on the attempted intraday recovery move.

Focus on trade developments, FOMC

Conflicting reports added to persistent trade uncertainties and continued weighing on investors' sentiment. This was evident from the prevalent cautious mood around equity markets, which turned out to be one of the key factors that benefitted the Swiss franc's perceived safe-haven demand.

It is worth mentioning that the Wall Street Journal reported on Tuesday that the US President Donald Trump is yet to decide on the December 15 tariffs. On the other hand, negotiators from both sides were reportedly laying the groundwork for a preliminary deal to wind back their trade war.

Reviving safe-haven demand was further reinforced by a weaker tone surrounding the US Treasury bond yields, which held the USD bulls from placing any aggressive bets. This further collaborated towards capping the major ahead of the highly anticipated FOMC monetary policy decision.

Heading into Wednesday's key event risk, traders are likely to take cues from the release of the latest US consumer inflation figures for November. The macro data might influence the USD price dynamics and produce some short-term trading opportunities later during the early North-American session.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9846
Today Daily Change	0.0004
Today Daily Change %	0.04
Today daily open	0.9842

Trends
Daily SMA20	0.9918
Daily SMA50	0.9924
Daily SMA100	0.989
Daily SMA200	0.9944

Levels
Previous Daily High	0.9883
Previous Daily Low	0.9833
Previous Weekly High	1.0009
Previous Weekly Low	0.9855
Previous Monthly High	1.0024
Previous Monthly Low	0.985
Daily Fibonacci 38.2%	0.9852
Daily Fibonacci 61.8%	0.9864
Daily Pivot Point S1	0.9822
Daily Pivot Point S2	0.9802
Daily Pivot Point S3	0.9772
Daily Pivot Point R1	0.9872
Daily Pivot Point R2	0.9903
Daily Pivot Point R3	0.9922

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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