USD/CHF moves sideways below 0.9000 as markets remain calm ahead of FOMC


  • USD/CHF continues to fluctuate in a narrow range.
  • US Dollar Index stays directionless around 90.50 on Wednesday.
  • Focus shifts to FOMC's policy announcements and dot plot.

After failing to hold above 0.9000 on Tuesday, the USD/CHF pair closed in the negative territory and seems to be having a difficult time regaining its traction on Wednesday. As of writing, the pair was up 0.13% on the day at 0.8992.

Fed set to leave policy settings unchanged

With investors staying on the sidelines ahead of the FOMC's policy announcements, the US Dollar Index (DXY) continues to move sideways around 90.50 for the third straight day. Meanwhile, Tuesday's mixed macroeconomic data releases from the US failed to provide a directional clue to the USD.

The Federal Reserve is expected to keep its policy settings unchanged following the June policy meeting. However, investors will keep a close eye on the Summary of Economic Projections to see if there is a hawkish shift in policymakers' rate outlook. 

Previewing this event, "median projections for core inflation in 2022/2023 will probably rise slightly, consistent with a sizable revision to 2021 being viewed as largely reflecting transitory factors," noted TD Securities analysts. "The median dot will probably show a rate hike by end-23. A less dovish Fed tone next week would help to stabilize the USD in the very short run."

Federal Reserve Preview: Forecasts from 11 major banks, eyeing any hints of tapering.

Technical levels to watch for

USD/CHF

Overview
Today last price 0.8991
Today Daily Change 0.0011
Today Daily Change % 0.12
Today daily open 0.898
 
Trends
Daily SMA20 0.8982
Daily SMA50 0.9072
Daily SMA100 0.9112
Daily SMA200 0.9069
 
Levels
Previous Daily High 0.9008
Previous Daily Low 0.8966
Previous Weekly High 0.901
Previous Weekly Low 0.8926
Previous Monthly High 0.9165
Previous Monthly Low 0.893
Daily Fibonacci 38.2% 0.8982
Daily Fibonacci 61.8% 0.8992
Daily Pivot Point S1 0.8961
Daily Pivot Point S2 0.8942
Daily Pivot Point S3 0.8919
Daily Pivot Point R1 0.9004
Daily Pivot Point R2 0.9027
Daily Pivot Point R3 0.9046

 

 

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