USD/CHF Declines but Still Holds Above Yesterday’s Lows
USD/CHF is falling for the third day in a row as it retreats after last week rally when it climbed from 0.9570 toward 0.9800.
USD/CHF levels ahead of the FED
The pair today peaked during the Asian session at 0.9741 but then turned to the downside and dropped to 0.9710/15. The lows are being tested but greenback so far is holding above. Under 0.9710 the next support levels is seen around 0.9700, where yesterday’s lows are located. A break lower would expose an uptrend line originated at April lows that currently stand around 0.9680.
On the opposite direction, a short-term downtrend line from last week highs is seen at 0.9730/40; a break higher could give enough momentum to the US dollar to resume last week rally, exposing 0.9790/0.9800.
The Federal Reserve will announce its decision at 18:00 GMT. No change in rates is expected but the tone and the words of the statement are likely to impact on the forex market, particularly in the dollar and the yen.