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Forex pairs in this Article » EUR/USD, USD/CHF (Moscow) - USD/CHF rebounded from 0.89 strong support level on Friday reaching 0.8950 area, and spending there the whole Asian session.

USD/CHF was hit by several factors

USD/CHF was on the sell-off during Friday as well, reaching new lows for the current year at 0.8903. The pair stumbled at the round level working as a strong psychological support. Nevertheless, the scheduled US events for this week may give additional catalyst to move down. We are talking about the FOMC meeting that is going to be historical – the first Committee meeting for the current year, and the last one for the current chairman. Bernanke confirmed the possibility of bond purchase reduction at every further meeting in December. But since then we’ve got some significant disappointments in form of weaker than expected labor data, suspicious signals from housing, and some slowing of consumer spending. Such an environment may give Bernanke the reasons to pause on further tapering, and it’s going to be another argument for USD/CHF sell-off. If so, wait for the move back to 0.89 level with initial target at 0.8857 support level, if broken.

What are today’s key USD/CHF levels?

Today's central pivot point can be found at 0.8947 with support below at 0.8902 (S1), 0.8857 (S2) and 0.8812 (S3), with resistance above at 0.8992 (R1), 0.9037, and 0.9082 (R3). Hourly Moving Averages are largely bearish, with the 200SMA at 0.9065 and the daily 20EMA bearish at 0.9029. Hourly RSI is neutral at 39.
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