The end of the upward correction for the US dollar against the Swiss franc
The USD/CHF is anticipated to initiate a bearish trend.
The pair failed to surpass the resistance level of 0.9430
The fate of the pair will be determined by the Federal Reserve meeting tomorrow
Breaking the support level of 0.9060 may contribute to a sharp decline for the pair
The outcome of tomorrow's Federal Reserve meeting might shape the pair's next move
The markets are waiting for the Federal Reserve meeting tomorrow to determine its policy on raising interest rates on the US dollar. The bank is currently undecided between raising interest rates by 25 basis points to control inflation, as indicated by CME surveys, or maintaining interest rates, influenced by the current banking crisis in the markets, despite the fact that only 26% of the surveys favor this decision.
Technical analysis of the USD/CHF pair in the short and medium term
The USD/CHF pair attempted to surpass the resistance level of 0.9400 but failed and retreated slightly to the level of 0.9240. The pair has been moving within a horizontal channel between the resistance level of 0.9400 and the lower limit of the channel at the level of 0.9060 since the beginning of this year. If the pair succeeds in exiting this horizontal channel, its movements may extend strongly in the direction of the breakthrough or the breach. If it surpasses the resistance level of 0.9400 and the prices remain above this level, the rise may extend to the levels of 0.9550 and then to 0.9970. As for the support level of 0.9060, breaking it and the prices remaining below this level may lead to a decline to the levels of 0.8950 and then to test the bottom at 0.8780. The decisions of the US Federal Reserve regarding raising interest rates on the US dollar are likely to have a strong impact on the movement of the pair, either by breaking upwards and extending the rise or by breaking the support of the lower limit of the horizontal channel and extending the decline downwards.