USD/CHF: sideways ahead of FOMC
USD/CHF looks very indecisive. Firstly pair was fluctuating around the support line from January lows. Then last week the prices finally settled below this line, the bulls and bears started fighting around the 78.6% retracement of this year’s advance and April lows just above 0.9200.
There’s diversion on H4 MACD and RSI charts. Analysts at Commerzbank said USD/CHF expect the pair to recover in the near term to 0.9297 and 0.9400. Danske Bank, on the contrary is selling with the target at 0.9020. In our view, the pair will stay in the 0.9270/9150 area ahead of the FOMC meeting and then we’ll see a breakout to either of these sides – it all depends on what Ben Bernanke says tomorrow at 18:30 GMT.
Resistance lies at 0.9245 (May low), 0.9300 and 0.9350 (200-day MA). Support is at 0.9130 (last week’s low), 0.9100 and 0.9021 (2013 low).
Chart. Daily USD/CHF