The USD/CHF pair is trading within a narrow range near 0.8850 during Tuesday’s American session as investors await the outcome of the Federal Reserve’s (Fed) monetary policy meeting on Wednesday.
USD/CHF Market Focus:
The Fed is widely expected to maintain its current interest rate levels, but market participants will be closely watching the Fed’s guidance on future interest rate decisions. Fed Chair Jerome Powell is anticipated to acknowledge recent progress in curbing inflation and cooling labor market conditions, which could further support expectations of rate cuts starting in September.
USD/CHF Economic Data:
Today’s release of the US JOLTS Job Openings data for June will be a key focus for investors, providing further insights into the state of the US labor market. Additionally, the Swiss Franc (CHF) will be influenced by the upcoming July Consumer Price Index (CPI) data, scheduled for release on Friday.
USD/CHF Technical Analysis:
On a four-hour timeframe, the USD/CHF pair is trading within a Falling Channel formation, suggesting a bearish trend. The 50-period Exponential Moving Average (EMA) near 0.8870 acts as a significant resistance level for the US Dollar bulls.
The 14-period Relative Strength Index (RSI) remains in the neutral range of 20.00-60.00, indicating a lack of strong momentum in either direction. However, the overall trend remains bearish.
USD/CHF Key Levels:
- Resistance: A decisive break above 0.8900 could pave the way for further upside towards the July 17 high at 0.8945 and the psychological resistance of 0.9000.
- Support: A break below the July 25 low of 0.8777 could expose the pair to the March 8 low near 0.8730 and the round-level support of 0.8700.