Swing area around 0.9000 above, and MAs below at 0.8076 area
The USDCHF is defining close risk/bias levels ahead of the FOMC rate decision.
Looking at the hourly chart, the 0.8999 to 0.9001 area is home to five separate swing highs over the last for trading days. The price did extend above that range during yesterday’s trade, but could not sustain momentum. The area reestablished resistance today at the session high at 0.90002. It will take a move above that level and the 0.90097 to 0.9012 to increase the bullish bias.
On the downside, the 100 and 200 hour moving averages are near converged at 0.8977 area. Moving below that level and then the low for the week at 0.8965 would have traders looking toward the swing lows for the month at 0.8946, 0.8939, and 0.89255.
Keep in mind, that the range over the last eight trading days from June 7 to June 16 is only about 85 pips. That is not a lot. So should the dollar go bid, there is room to roam above the June 7 high at 0.9010 area. Conversely, should the dollar start to sell off, getting below 0.89255 is not out of the question as well.
In other words, don’t get mesmerized by the narrow trading range. Non trending can start to trend.