On the daily chart below, we can see that the big selloff caused by the Silicon Valley Bank failure and the fears of another banking crisis, brought the price back to the support at 0.9059. The move got there too fast though and the price was overextended as signalled by the distance between the price and the blue short period moving average.

In fact, we started to see a pullback that intensified soon after as Credit Suisse got again in trouble. The sellers though, leant onto the red long period moving average as Credit Suisse got bought by UBS, and the price started to range around the 0.9287 level. The focus now is on the FOMC decision today and the SNB on Thursday.

USD/CHF Technical Analysis

On the 4 hour chart below, we can see that the price got stuck in a range recently around the 0.9287 level but we got a breakout yesterday. The momentum is in favour of the sellers as depicted by the moving averages crossed to the downside.

The sellers are now in control, but everything will come down to the FOMC today and it’s likely that we will see the price coming back into the range in case the Fed sounds hawkish. On the other hand, a dovish outcome would give the sellers more conviction to continue the downtrend.

On the 1 hour chart below, we can see that after breaking out of the range, the price retested the support now turned resistance and found sellers. Now, we have a minor support at 0.9209 and we should see the sellers extending the move lower in case the support gives way. Watch out for the FOMC today!