USD/CHF has been residing inside the corrective structural range of 0.9440-0.9750 area for a few months. After a long dominating bearish trend, the pair has been currently very much volatile, making correction, so there is no sign of a directional bias. After the FOMC hawkish statement and unchanged funds rate, the price has been quite bullish in nature but yesterday bullish rejection has told a different story. Recently, Switzerland's Trade Balance report was published with a worse figure at 2.17B decreasing from the previous figure of 3.49B which was expected to be at least 2.41B. Despite the worse-than-expected report, CHF has been extending gains in the market against USD which does signal that CHF is still holding the power to dominate USD in the market. On the USD side, since FOMC decision on the funds rate USD has found support with the other economic reports as well like Unemployment Claims and Philly Fed Manufacturing Index. Today, USD Flash Manufacturing PMI report is going to be published which is expected to show a slight increase to 52.9 from the previous figure of 52.8 and Flash Services PMI report is expected to decrease to 55.8 from the previous figure of 56.0. Though the economic reports from the US today is expected to have a minimal impact in the market against CHF, but better reports may hold CHF gains for a while. As for the current scenario, CHF is expected to have an upper hand over USD in the coming days.
Now let us look at the technical chart. The price is currently residing below the resistance level of 0.9750 which is expected to show more bearish pressure in the coming days. Yesterday, a good amount bullish rejection was encountered in the market after the FOMC bullish statement, which pushed the pair towards the resistance to break above it. As the price remains below the 0.9750 resistance level, it is expected to reach towards the structural support of 0.9440 support level in the coming days. On the other hand, if the price breaks above the 0.9750 with a daily close, then we will consider buy positions with a target towards 1.00.
