The USDCHF has been trading within the narrow range of 0.93 and 0.9237 (which coincides with the 38.20% Fibonacci retracement level).
With the Swiss National Bank (SNB) interest rate decision due on Thursday, the USDCHF is likely to continue consolidating along this range.
As the directional bias of the USDCHF is heavily dependent on the volatility of the DXY, a breakout in the interim for the USDCHF is likely to be driven by a strong move on the DXY.
If the SNB hikes rates by 50bps as forecasted, taking interest rates to 1.50%, this could strengthen the CHF and see the USDCHF trade lower.
If the price breaks below the immediate support level of 0.9237, the next key support level is 0.91. However, watch out for possible hesitation at the interim support level and 61.8% Fibonacci retracement level of 0.9174.
With the Swiss National Bank (SNB) interest rate decision due on Thursday, the USDCHF is likely to continue consolidating along this range.
As the directional bias of the USDCHF is heavily dependent on the volatility of the DXY, a breakout in the interim for the USDCHF is likely to be driven by a strong move on the DXY.
If the SNB hikes rates by 50bps as forecasted, taking interest rates to 1.50%, this could strengthen the CHF and see the USDCHF trade lower.
If the price breaks below the immediate support level of 0.9237, the next key support level is 0.91. However, watch out for possible hesitation at the interim support level and 61.8% Fibonacci retracement level of 0.9174.
