USD/CHF accelerates de upside, approaches 0.9700

• Spot moves higher and challenges the 0.9700 handle.
• Broad-based USD-strength leading the way up.
• US New Home Sales, FOMC meeting next of relevance.

The greenback is gathering further upside traction in the middle of the week and is now pushing USD/CHF to test fresh tops in the boundaries of the 0.9700 handle.

USD/CHF looks to FOMC

The pair is extending the leg higher so far today, clinching fresh 5-day peaks in the proximity of 0.9700 the figure and always backed by a solid demand for the greenback ahead of the FOMC event.

In fact, and with less than five hours for the Fed’s decision on rates, the buck manages to keep advancing, now taking the US Dollar Index (DXY) to daily lows in the key 94.40 region, which has been acting as a solid barrier as of late.

Regarding the Fed event, the probability of a rate hike in the Fed Funds rate is at 95% according to CME Group, while investors will also be vigilant on the updated projections (dot plot) and the press conference by Chief J.Powell.

USD/CHF key levels

The pair is now up 0.47% at 0.9695 facing the next hurdle at 0.9695 (high Sep.26) ahead of 0.9732 (200-day SMA) and finally 0.9762 (high Sep.11). On the other hand, a breach of 0.9645 (10-day SMA) would expose 0.9543 (low Sep.21) and finally 0.9535 (low Apr.10).