• USD/CHF looks to overstep 0.9800 as expectations of a hawkish tone by the Fed bolstered.
  • An aggressive tight policy stance will shrink liquidity and growth rate going forward.
  • The Swiss CPI is seen at 2.5% against the prior print of 2.4%.

The USD/CHF pair is attempting to test the round level resistance of 0.9800 after failing to kiss the same in the last New York session. Broad-based strength in the US dollar index (DXY) is supporting the asset to resume rallying higher.

The asset has printed a fresh yearly high at 0.9800 on Tuesday ahead of the announcement of the monetary policy by the Federal Reserve (Fed). A serious transition from an ultra-loose stimulus era into a tight liquidity phase is strengthening all the greenback-dominated currencies. Tight monetary policy in the US economy will keep the greenback in the grip of bulls for a prolonged period. The Fed is highly expected to announce a rate hike by 50 basis points (bps), which will shrink liquidity and henceforth have a significant impact on the growth rate.

The DXY is oscillating in a narrow range of 103.44-103.51 in the early Tokyo session and has been displaying high volatility since Tuesday. Meanwhile, the 10-year US Treasury yields are moving higher to recapture the psychological resistance of 3%.

On the Swiss front, investors are eyeing the release of the Consumer Price Index (CPI), which is due on Thursday. A preliminary reading shows a tad improvement in the inflation figure at 2.5% against the prior print of 2.4%.

USD/CHF

Overview
Today last price 0.9786
Today Daily Change 0.0008
Today Daily Change % 0.08
Today daily open 0.9778
 
Trends
Daily SMA20 0.9492
Daily SMA50 0.9364
Daily SMA100 0.9284
Daily SMA200 0.9243
 
Levels
Previous Daily High 0.979
Previous Daily Low 0.9707
Previous Weekly High 0.9759
Previous Weekly Low 0.9547
Previous Monthly High 0.9759
Previous Monthly Low 0.9221
Daily Fibonacci 38.2% 0.9758
Daily Fibonacci 61.8% 0.9739
Daily Pivot Point S1 0.9727
Daily Pivot Point S2 0.9676
Daily Pivot Point S3 0.9645
Daily Pivot Point R1 0.9809
Daily Pivot Point R2 0.9841
Daily Pivot Point R3 0.9892

 

 

 

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