The USD\/CHF extends its weekly rally and is up by 1.60%. Risk appetite is back as stocks rally, and safe-haven peers suffer.
The USD\/CHF clings to parity for the second successive day, trading at 1.0028, recording minimum gains of 0.11%, ahead of the US Fed monetary policy decision. Positive sentiment is weighing on safe-haven peers, in this case, the Swiss franc.
European and US shares are beginning to recover, but the correction could be short-lived unless Fed Chair Powell & Co disappoints investors. In the meantime, the greenback remains in the driver\u2019s seat.
The US Dollar Index, a gauge of the buck\u2019s 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\u2019s 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\u2019s decision.
Technically; 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 1.0064 because failure to do that would leave the major exposed to selling pressure and could form a double top.
The USD\/CHF 1-hour chart illustrates that the major is battling near this week\u2019s highs around 1.0037. It\u2019s worth noting that the 50-hour simple moving average (SMA) 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 (1.0000). 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.<\/p>\n","protected":false},"excerpt":{"rendered":"
The USD\/CHF extends its weekly rally and is up by 1.60%. Risk appetite is back as stocks rally, and safe-haven peers suffer.The USD\/CHF clings to parity for the second successive day, trading at 1.0028, recording minimum gains of 0.11%, ahead of the US Fed monetary policy decision. Positive sentiment is weighing on safe-haven peers, in …<\/p>\n","protected":false},"author":13,"featured_media":36454,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[7176,9321,6868,7163,9305,6984,7442,7078],"class_list":["post-67147","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-european-shares","tag-feds-decision","tag-fomc","tag-jerome-powell","tag-monetary-policy-decision","tag-treasury-yields","tag-us-shares","tag-usd-chf"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/67147","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=67147"}],"version-history":[{"count":2,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/67147\/revisions"}],"predecessor-version":[{"id":67151,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/67147\/revisions\/67151"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/36454"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=67147"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=67147"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=67147"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}