USDCHF backs off highs as the market prepares for the FOMC rate decision

The USDCHF has eased slightly ahead of the FOMC rate decision, retreating below key resistance levels: the swing high at 0.9077 and the 200-hour moving average (MA) at 0.9068. Reclaiming these levels would shift the technical bias in favor of buyers.

On the downside, the 100-hour MA at 0.9048, which was briefly broken yesterday, now serves as a pivotal support level. Today’s USD strength has pushed the price back above this critical barometer, but a move below it would reinforce bearish momentum.

If the price falls below the 100-hour MA, the next targets include the 38.2% retracement of the December rally and the swing area near 0.90209. These levels will be crucial for determining further directional bias.

This article was written by Greg Michalowski at www.forexlive.com.