USD/CHF technical analysis: Set-up seems tilted in favour of bullish traders ahead of FOMC

Over the past few trading sessions, the USD/CHF pair has been drifting lower along a short-term descending trend-channel formation on the 1-hourly chart.
Given last week's goodish up-move from the vicinity of the 0.9800 handle, the channel constituted towards the formation of a bullish continuation - flag pattern.

Haresh Menghani FXStreet

The top end of the descending trend-channel coincides with 50-hour SMA and should act as a key pivotal point as market participants keenly await the outcome of the highly anticipated FOMC July monetary policy meeting.

Meanwhile, technical indicators on hourly charts have again started gaining positive momentum and maintained their bullish bias on the daily chart, supporting prospects for an eventual breakthrough the mentioned confluence barrier.

Sustained move beyond the 0.9910-20 region will reinforce the constructive outlook and set the stage for a move back towards the 0.9945-50 supply zone before the momentum further extends towards reclaiming the key parity mark.

Alternatively, failure at the current resistance is likely to find some support near the lower end of the trend-channel, currently near the 0.9880 region, which if broken might negate the bullish outlook and open the room for further decline.

Below the said support, the pair is likely to break through the 0.9850 intermediate horizontal support and head back towards challenging the 0.9800 round figure mark, which seems to be the scenario in case of a more dovish shift by the Fed.

USD/CHF 1-hourly chart

USD/CHF

Overview
Today last price	0.9907
Today Daily Change	0.0005
Today Daily Change %	0.05
Today daily open	0.9902

Trends
Daily SMA20	0.9877
Daily SMA50	0.9906
Daily SMA100	0.9988
Daily SMA200	0.9979

Levels
Previous Daily High	0.9923
Previous Daily Low	0.989
Previous Weekly High	0.9947
Previous Weekly Low	0.9804
Previous Monthly High	1.0017
Previous Monthly Low	0.9693
Daily Fibonacci 38.2%	0.9903
Daily Fibonacci 61.8%	0.991
Daily Pivot Point S1	0.9887
Daily Pivot Point S2	0.9872
Daily Pivot Point S3	0.9854
Daily Pivot Point R1	0.992
Daily Pivot Point R2	0.9938
Daily Pivot Point R3	0.9953

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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