- USD/CHF edges higher past key support confluence as markets await FOMC Minutes.
- Convergence of 200-SMA, three-week-old rising support line limits immediate downside.
- Upside RSI (14) suggests further grinding of Swiss Franc pair towards the north.
USD/CHF stays defensive around 0.8780 as it struggles to keep the five-week uptrend heading into Wednesday’s European session. That said, the Swiss Franc (CHF) pair’s latest inaction could be linked to the market’s cautious mood ahead of the Federal Open Market Committee’s (FOMC) latest Monetary Policy Meeting Minutes.
Technically, a downward-sloping resistance line from May 31, close to 0.8820 by the press tie, also challenges the USD/CHF buyers even if the quote manages to keep the previous week’s breakout of the 200-SMA. In doing so, the major currency pair also fails to justify the upbeat RSI (14) line, not overbought.
With this, the USD/CHF is likely to portray another attempt in crossing the 0.8820 hurdle, a break of which could propel the prices toward the mid-June swing low of surrounding 0.8900.
However, the 50% and 61.8% Fibonacci retracement of its May-July downside, respectively near 0.5580 and 0.8920, will act as the additional upside filters to watch.
On the contrary, a convergence of the 200-SMA and three-week-long ascending trend line highlights 0.8745 as the short-term key support.
In a case where the Fed Minutes disappoint the US Dollar bulls and drag the USD/CHF price below the 0.8745 support confluence, the odds of witnessing a slump towards the 0.8700 round figure and them to the multi-year low marked the last month around 0.8550 can’t be ruled out.