USD/CHF in a tight range below 100-DMA, eyes on FOMC

The USD/CHF pair continues to stay below the 1.0100 handle, where the 100-DMA is located, as investors are remaining on the sidelines before the FOMC decisions. At the moment is the pair is down 0.20% on the day at 1.0082.

US data ignored

According to the latest report published by U.S. Bureau of Labor Statistics, the CPI for all items, less food and energy rose 2.2% over the last 12 months; this was the fifteenth straight month the 12-month change remained in the range of 2.1 to 2.3%. Additionally, U.S. retail and food services sales for February 2017 were $474.0 billion, an increase of 0.1% from the previous month, and 5.7% above February 2016.

Furthermore, the business activity continued to grow at a solid clip in New York State, as the headline general business conditions index edged down two points to 16.4, still bettering the forecasts. 

SNB

After today's FOMC announcements, the participants will be looking into signals about a potential intervention by SNB, at its monthly meeting tomorrow. Credit Agricole CIB Research expects the SNB to reaffirm at its meeting this week that a policy mix consisting of negative rates and FX intervention will remain in place. From that angle, CACIB believes that the central bank will continue to do its utmost in order to keep currency upside capped from current levels. 

Technical levels

Supports for the USD/CHF could be found at 1.0060 (Mar. 13 low) followed by 1.0040 (Fib. 38.2% - Jan. – Feb. Fall) and 1.0000 (psychological level). On the flip side, resistances are aligned at 1.0095/1.0100 (100-DMA/20-DMA), 1.0150 (Fib. 78.6%) and 1.0170 (Mar. 7 high).