USD/CHF Price Analysis: Consolidates near 0.9100 as Fed policy looms large

The USD/CHF pair trades back and forth in a narrow range near the round-level resistance of 0.9100 in the late European session. The Swiss Franc asset struggles for a direction as investors await the monetary policy decision by the Federal Reserve (Fed) and crucial US economic data.

The Fed is expected to deliver a neutral interest rate decision but will maintain a hawkish guidance due to upside risks to inflation remaining persistent. Higher US long-term bond yields and gradually easing price pressures are supporting a steady monetary policy decision from the Fed.

Meanwhile, investors await the speech from Swiss National Bank (SNB) Governor Thomas J. Jordan which would impact visibility for the Swiss Franc. SNB Jordan is expected to discuss about keeping interest rates higher for longer to keep inflation sustainably around or below 2%.

USD/CHF aims to stabilize above the horizontal resistance plotted from September 29 low at 0.9090, which is turning as a support. Upward-sloping 20-period Exponential Moving Average (EMA) indicates that the near-term outlook is bullish. The Relative Strength Index (RSI) (14) oscillates in the bullish range of 60.00-80.00, indicating strength in favor of US Dollar bulls.

A fresh upside would appear if the asset breaks above the round-number resistance of 0.9100, which will drive the asset toward May 31 high around 0.9147, followed by October 6 high at 0.9176.

On the contrary, a downside move below October 25 low at 0.8920 would expose the asset to October 24 low at 0.8888. Further breakdown below the latter would drag the asset toward September 5 low around 0.8830.

USD/CHF two-hour chart