USD/CHF remains depressed near multi-year lows, around mid-0.9100s ahead of FOMC


  • USD/CHF witnessed some follow-through selling for the seventh straight session on Wednesday.
  • The prevalent selling bias around the USD was seen as a key factor behind the ongoing downfall.
  • Repositioning trade ahead of the highly anticipated FOMC decision might infuse some volatility.

The USD/CHF pair dropped to fresh multi-year lows during the early European session, albeit quickly recovered few pips thereafter and was last seen trading near mid-0.9100s.

The pair prolonged its recent bearish trajectory and continued losing ground for the seventh consecutive session on Wednesday, also marking the eighth day of a negative move in the previous nine. The downfall was exclusively sponsored by the emergence of some fresh selling around the US dollar.

The greenback remained depressed and languished near two-year lows through the first half of the trading action on Wednesday. The impasse over the next round of US fiscal stimulus measures and expectations of a dovish shift in the Fed's policy stance contributed to the USD's offered tone.

Worries that the US economic recovery could be grinding to a halt in the wake of the resurgence in coronavirus cases have been fueling speculations that the Fed will add more stimulus to support the economy. The FOMC is scheduled to announce its policy decision during the US session on Wednesday.

The US central bank is widely expected to keep its policy measures unchanged at the end of a two-day meeting on Wednesday and hence, the key focus will be on the accompanying rate statement. The forward guidance will help investors determine the next leg of a directional move for the buck.

Meanwhile, a modest bounce in the US Treasury bond yields might extend some support to the greenback. This coupled with some repositioning trade ahead of Wednesday's key event risk might trigger some short-covering bounce and infuse some volatility around the USD/CHF pair.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9157
Today Daily Change -0.0022
Today Daily Change % -0.24
Today daily open 0.9179
 
Trends
Daily SMA20 0.9368
Daily SMA50 0.9483
Daily SMA100 0.9584
Daily SMA200 0.9685
 
Levels
Previous Daily High 0.9228
Previous Daily Low 0.9155
Previous Weekly High 0.941
Previous Weekly Low 0.9204
Previous Monthly High 0.9651
Previous Monthly Low 0.9376
Daily Fibonacci 38.2% 0.9183
Daily Fibonacci 61.8% 0.92
Daily Pivot Point S1 0.9147
Daily Pivot Point S2 0.9115
Daily Pivot Point S3 0.9075
Daily Pivot Point R1 0.922
Daily Pivot Point R2 0.926
Daily Pivot Point R3 0.9292

 

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

USD/JPY pops and drops on BoJ's expected hold

USD/JPY pops and drops on BoJ's expected hold

USD/JPY  reverses a knee-jerk spike to 142.80 and returns to the red below 142.50 after the Bank of Japan announced on Friday that it maintained the short-term rate target in the range of 0.15%-0.25%. The decision aligned with the market expectations. Governor Ueda's presser eyed. 

USD/JPY News
AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD bears attack 0.6800 amid PBOC's status-quo, cautious mood

AUD/USD attacks 0.6800 in Friday's Asian trading, extending its gradual retreat after the PBOC unexpectedly left mortgage lending rates unchanged in September. A cautious market mood also adds to the weight on the Aussie. Fedspeak eyed. 

AUD/USD News
Gold consolidates near record high, bullish potential seems intact

Gold consolidates near record high, bullish potential seems intact

Gold price regained positive traction on Thursday and rallied back closer to the all-time peak touched the previous day in reaction to the Federal Reserve's decision to start the policy easing cycle with an oversized rate cut.

Gold News
Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

Ethereum rallies over 6% following decision to split Pectra upgrade into two phases

In its Consensus Layer Call on Thursday, Ethereum developers decided to split the upcoming Pectra upgrade into two batches. The decision follows concerns about potential risks in shipping the previously approved series of Ethereum improvement proposals.

Read more
Bank of Japan set to keep rates on hold after July’s hike shocked markets

Bank of Japan set to keep rates on hold after July’s hike shocked markets

The Bank of Japan is expected to keep its short-term interest rate target between 0.15% and 0.25% on Friday, following the conclusion of its two-day monetary policy review. The decision is set to be announced during the early Asian session. 

Read more
Moneta Markets review 2024: All you need to know

Moneta Markets review 2024: All you need to know

VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.

Read More

Forex MAJORS

Cryptocurrencies

Signatures