Positive Risk Sentiment Boosts The Dollar

The US dollar advances some 0.27% ahead of the release of the Fed monetary policy statement. The USD/CHF is upward biased but faces strong resistance at the 100-DMA. The USD/CHF surges in the North American session reclaim the 0.9200 figure ahead of the FOMC monetary policy decision. The pair is trading at 0.9207.

Risk sentiment is positive, portrayed by European and US equities trading in the green territory, despite Ukraine and Russian tensions not easing. However, the expectations of a hawkish hold of the Federal Reserve keep USD bulls in charge of the pair.

In the Asian session, the USD/CHF remained subdued in a narrow range of 10-pips range, within 0.9170-80. However, as European traders got to their desks, USD bulls took control of the pair, propelling an upward move that reclaimed the 0.9200 figure.

From a technical perspective, the USD/CHF is neutral-upward biased. At press time, the pair faces strong resistance at the 100-day moving average (DMA) at 0.9211. A breach of that level would expose the January 11 daily high at 0.9278, followed by the confluence of a downslope trendline and December 15, 2021, around 0.9294-0.9305.

On the flip side, the USD/CHF first support would be 0.9200. If broken, the next support would be the 200-DMA at 0.9160, adding further downward pressure on the pair, sending it towards November 2, 2021, a daily low at 0.9085.