Positive sentiment is weighing on safe-haven peers, in this case, the Swiss franc. European and US stocks are recovering, but the correction could be short-lived unless
Chair Powell & Co disappoints investors. In the meantime, the greenback remains in the driver’s seat.Index, a gauge of the buck’s value against a basket of six currencies, edges up 0.04% and clings to 105.516. Contrarily, US Treasury yields are under pressure. The 10-year benchmark note rate falls eight basis points, yielding 3.395%.
In the meantime, the USD/CHF Wednesday’s price action remained choppy, but in the mid-European session, the major dropped below the parity and printed a daily low at 0.9961, just below the daily pivot point. Nevertheless, the pair jumped above 1.000 and may remain around that level into Fed’s decision.The USD/CHF daily chart depicts the pair as upward biased, but it appears the price is overextended. For USD/CHF bulls is crucial a break to new year-to-date highs above 1.
The USD/CHF 1-hour chart illustrates that the major is battling near this week’s highs around 1.0037. It’s worth noting that the 50-hour simple moving average at around 0.9971 was tested earlier during the day but acted as a dynamic support level. If the USD/CHF is headed towards new YTD highs, the first resistance would be 1.0064. A breach of the latter would expose the R1 daily pivot at 1.0080, followed by the 1.0100 figure. On the other hand, failure to conquer new highs, the USD/CHF first support would be the parity . Break below would expose the daily pivot point at 0.9980, followed by the confluence of the 100-hour SMA and the S1 pivot point at 0.9910.