0.9400.
The USD/CHF currency pair is currently trading at 0.9387, slightly below the 100-day Exponential Moving Average (EMA) of 0.9384. This follows a period of gains on Tuesday which saw the pair reach a high of 0.9400.
The USD/CHF currency pair is a reflection of the relative strength of the US dollar and the Swiss franc. The US dollar is the world’s reserve currency and is the most traded currency in the world. The Swiss franc is the official currency of Switzerland and is a safe-haven currency, meaning it is sought after during times of economic uncertainty.
The pair has been trading in a tight range since the start of 2021, with the 100-day EMA providing support and resistance. This suggests that the pair is in a period of consolidation, as traders wait for a catalyst to break the range.
The US dollar has been the main driver of the pair in recent weeks, as the greenback has been supported by the US Federal Reserve’s commitment to keep interest rates low and its asset purchase program. This has helped to support the US dollar, making it an attractive investment for traders.
The Swiss franc, on the other hand, has been weighed down by a weak economy, with the Swiss National Bank (SNB) having to intervene in the currency market to weaken the franc. This has caused the franc to lose some of its safe-haven appeal, making it less attractive to investors.
The pair is likely to remain rangebound in the near-term, as traders wait for more clarity on the global economic outlook. The US Federal Reserve is scheduled to release its latest monetary policy decision later this month, which could provide some direction for the pair.
In addition, traders will be watching for any signs of an economic recovery in Switzerland, which could boost the Swiss franc and cause the pair to break out of its current range.
Overall, the USD/CHF currency pair is currently trading slightly below the 100-day EMA of 0.9384, after hitting a high of 0.9400 on Tuesday. The pair is likely to remain rangebound in the near-term, as traders wait for more clarity on the global economic outlook. The US Federal Reserve is expected to provide some direction on the pair later this month, while traders will also be watching for any signs of an economic recovery in Switzerland. In the meantime, the 100-day EMA is likely to provide support and resistance for the pair, as it continues to consolidate.
