The U.S. dollar paused its recent slide against the Swiss franc today, stabilizing around 0.8860 in the European trading session. After three days of declines, the currency pair’s movement suggests a cautious market response to potential further tightening by the Federal Reserve.
Traders are closely monitoring technical levels, with immediate resistance seen at the nine-day Exponential Moving Average (EMA) of 0.8892 and a notable psychological threshold at 0.8900. A break above these levels could prompt a test of the Fibonacci retracement mark at 0.8913, followed by a possible advance towards key resistance at 0.8950.
The rebound comes on the heels of the release of the minutes from the Federal Open Market Committee (FOMC), which hinted on Tuesday that the Fed might continue to tighten monetary policy if inflation does not align with its objectives. This has lent some support to the dollar despite bearish technical indicators, such as a Relative Strength Index (RSI) below the midpoint and a Moving Average Convergence Divergence (MACD) lagging behind its signal line.
Market participants are also eyeing a critical support level at 0.8850 for . A decisive drop below this point could lead the pair to a three-month low near 0.8795. However, sustained progress in controlling inflation could reinforce the Fed’s current stance on firm monetary policy, potentially supporting the dollar’s value against the Swiss franc.
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