USD/CHF Price Analysis: Attracts buyers above 0.8900 ahead of SNB policy

USD/CHF has picked strength around 0.8920, following the footprints of the USD Index.
The downside move in the USD Index has paused for now but is not faded as Fed policymakers have delivered dovish commentary.
The SNB is expected to raise interest rates further by 25 basis points (bps) to 1.75%.

Sagar Dua FXStreet

The USD/CHF pair has attempted a recovery after building a base around 0.8920 in the early European session. The Swiss Franc asset has picked some strength after observing that the US Dollar Index (DXY) has gauged an intermediate support around 102.00.

The downside momentum in the USD Index has paused for now but is not faded as Federal Reserve (Fed) policymakers have delivered dovish commentary for further interest rate action.

Meanwhile, the interest rate decision by the Swiss National Bank (SNB), which will be announced at 7:30 GMT, will be in focus. A poll from Reuters showed that SNB Chairman Thomas J. Jordan will raise interest rates by 25 basis points (bps) to 1.75% as the central bank believes that it is really important to bring Swiss inflation to a level of price stability.

USD/CHF is declining toward its intermediate support plotted from May 12 low around 0.8900 on a four-hour scale. The 50-period Exponential Moving Average (EMA) at 0.974 has been acting as a barricade for the US Dollar bulls.

The Relative Strength Index (RSI) (14) is oscillating in the bearish range of 20.00-60.00, which indicates that each pullback move in the asset has been capitalized as a selling opportunity by the market participants.

Going forward, a breakdown below May 12 low around 0.8900 would expose the Swiss Franc asset to April 13 low at 0.8860 followed by the ultimate support plotted from May 04 low at 0.8820.

In an alternate scenario, an upside move above the psychological resistance of 0.9000 would fade the bearish bias and will drive the asset toward June 06 low at 0.9033 and May 30 high at 0.9084.

USD/CHF four-hour chart

USD/CHF

Overview
Today last price	0.8926
Today Daily Change	-0.0005
Today Daily Change %	-0.06
Today daily open	0.8931

Trends
Daily SMA20	0.903
Daily SMA50	0.8978
Daily SMA100	0.9103
Daily SMA200	0.933

Levels
Previous Daily High	0.8998
Previous Daily Low	0.892
Previous Weekly High	0.9109
Previous Weekly Low	0.8902
Previous Monthly High	0.9148
Previous Monthly Low	0.882
Daily Fibonacci 38.2%	0.895
Daily Fibonacci 61.8%	0.8968
Daily Pivot Point S1	0.8901
Daily Pivot Point S2	0.8871
Daily Pivot Point S3	0.8822
Daily Pivot Point R1	0.898
Daily Pivot Point R2	0.9028
Daily Pivot Point R3	0.9058

Author

Sagar Dua

FXStreet

Sagar Dua is associated with the financial markets from his college days. Along with pursuing post-graduation in Commerce in 2014, he started his markets training with chart analysis.

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