The USDCHF pair, which is currently trading at 0.86963, shows an increase in strength and recovers the 0.8700 level on Tuesday.

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• USD/CHF gains momentum and reclaims the 0.8700 area on Tuesday.

The pair currently trades last at 0.86963.

The previous day high was 0.8672 while the previous day low was 0.8641. The daily 38.2% Fib levels comes at 0.8653, expected to provide support. Similarly, the daily 61.8% fib level is at 0.866, expected to provide support.

The USD/CHF pair gains traction on Tuesday. The pair is trading at 0.8700, up 0.03% after hitting a low of 0.8637. Investors will focus on the Federal Open Market Committee (FOMC) meeting on Wednesday. Meanwhile, the US Dollar Index (DXY), a measure of the value of the Greenback against six other major currencies, gains momentum and holds above the 101.30 mark on Tuesday. This, in turn, acts as a tailwind for the USD/CHF pair.

US S&P Global PMI data revealed that Manufacturing activity for July increased from 46.3 to 49, above market expectations. The reading for July marked the sixth consecutive month of expansion but was restrained by weakening service sector conditions. Meanwhile, the Services PMI decreased from 54.4 to 52.4, below expectations of 54. The Composite PMI index fell to 52 from 53.2 in June.

On Wednesday, the Federal Reserve (Fed) will announce the outcome of its monetary policy meeting. It is widely anticipated that the Fed will raise interest rates by a quarter percentage point to 5.25–5.50%. Market players believe this event could be the last rate hike of the current hike cycle. However, Fed Chairman Jerome Powell’s press conference on Wednesday will hint at some clues about the possibility of future Fed tightening policy.

The data released last week on the Swiss franc front revealed that the Swiss Trade Balance increased by 4,823 million from 5,442 million previously and was lower than expected by 5,442 million. Exports jumped to 24,917M from 23,879M in May, while imports rose to 20,093M from 18,438 M.

Looking ahead, the Swiss Credit Suisse Economic Expectations, ZEW Survey Expectations, and KOF Leading Indicator for July could offer clues about the Swiss Franc movement. On the US docket, US CB Consumer Confidence and Advance Gross Domestic Product (GDP) QoQ will be due later this week. However, this week’s key events will be the FOMC meeting and Fed Chairman Jerome Powell’s press conference. Market participants will closely watch this development and find opportunities around the USD/CHF pair.

Technical Levels: Supports and Resistances

USDCHF currently trading at 0.8699 at the time of writing. Pair opened at 0.8656 and is trading with a change of 0.5 % .

The pair remains strongly bearish on the daily time frame. It trades below the 20 SMA @ 0.881, 50 SMA 0.8934, 100 SMA @ 0.9002 and 200 SMA @ 0.9218.

The previous day high was 0.8672 while the previous day low was 0.8641. The daily 38.2% Fib levels comes at 0.8653, expected to provide support. Similarly, the daily 61.8% fib level is at 0.866, expected to provide support.

Note the levels of interest below:

• Pivot support is noted at 0.864, 0.8625, 0.8609
• Pivot resistance is noted at 0.8672, 0.8688, 0.8704

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