USD/CHF Price Forecast: US Dollar Rises Ahead of Fed

from Daily Forex. This is Christopher Lewis taking a look at the US dollar against the Swiss Frank. The US dollar has rallied a bit during the early part of the trading session here on Tuesday as it looks like we are trying to get to the 0.83 level. The 0.83 level is an area that has been essentially fair value and an area that you could be talking about consolidation between 0.8 82 and 0.84. Short-term pullbacks at this point in time, I think, do offer buying opportunities with the 50-day EMA now looking to be technically supportive. Keep in mind that the Swiss National Bank has recently in its quarterly report said it was willing to identify imbalances in the Frank and intervene directly in the markets. Beyond that, they have recently reiterated their desire to have uh zero interest rates and keep them there. The Federal Reserve, on the other hand, is fighting inflation and the interest rate differential is still pretty wide. The US interest rate range is between 3.75% and 4%. So, you get paid to hold this. If the market were to break above the 0.84 84 level, then the market could come uh into more of a FOMO trade. A breakdown below the 0.82 level uh I think could be rather negative. All things being equal, I like the idea of buying dips. I recognize that there's a red letter event here coming at the end of the day tomorrow. Once we get through that discussion, press conference and statement, I think you'll see whether or not the Federal Reserve is looking to remain hawkish. If they are, that should give this pair a little bit of strength.