USD/CHF continues to decline on Tuesday, retreating from the local high and momentarily trading below 0.9650.
Investors are in no hurry to take new positions as this week the Fed will announce its interest rate decision on Wednesday and the Swiss National Bank on Thursday.
Both the Fed and the NBSH are expected to hold a 75 basis point rate hike. But while the U.S. federal funds rate will rise to 3.25%, the Swiss rate will only come out of negative territory at 0.5%.
Macroeconomic statistics from Switzerland are coming out today. They are the August export-import and trade balance report. This week the Swiss State Secretariat will release its economic forecast.
Technical analysis for USD/CHF
Major forex indicators are not giving clear signals. Bollinger Bands continue to decline while the MACD has moved into positive territory and continues to rise. Oscillator stochastic is going up to the 80% level.
In case of a breakout of the resistance at 0.97, we open a buy position with a target at 0.9807. Placement of protective stop is at 0.9650.
If the pair is fixed below 0.9600, then buy with the target at 0.9520. Stop-loss is set at 0.9650.
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