FXStreet (Mumbai) - The offered tone on the CHF has finally taken a back seat in Europe today, opening doors for a technical correction in the USD/CHF pair following a nine day rally.
Eyes hourly 50-MA
The spot ran into offers at the high of 0.9874 and inched lower towards the hourly 50-MA located at 0.9838 levels. The CHF was ditched across the board after Draghi hinted at more QE in December last week.
Since then, the pair rallied almost 300 pips, leaving it overbought on the technical charts. The focus now is on the FOMC statement due for release later today.
USD/CHF Technical Levels
The pair currently trades around 0.9852. The immediate support is seen at 0.9838 (hourly 50-MA), under which the pair could test 0.98 levels. A break below the same would open doors for a sell-off 0.9767 (Oct 6 high). On the higher side, a break above 0.9874 (daily high) would be required to see the pair extend gains to 0.99 handle.
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