Short-Covering in USD CHF After FOMC Meeting Pares Losses

The initial reaction by the USD CHF to the FOMC announcement triggereda quick short-covering rally but this pair has settled a bit and is nowtrading inside of a range.

The initial reaction by the USD CHF to the FOMC announcement triggered a quick short-covering rally but this pair has settled a bit and is now trading inside of a range.

The USD CHF remains in an uptrend on the daily chart, but today’s trading action has weakened this market and put it in a position to challenge the last swing bottom at 1.1240.  A move through this price will turn the main trend to down.

This pair should continue to remain under pressure into the close, however, crossing back over the opening price at 1.1426 will negate the negative tone.