USD/CHF hovering above multi-month lows at 0.9440 awaiting the Fed

• The USD/CHF has lost about 1,6% in three days to hit two-month lows at 0.9440.
• The US dollar remains vulnerable amid market speculation of Fed easing.
• Below 0.9500, the pair is testing Fibonacci retracement at 0.9460 area.

The US dollar is set to complete its third consecutive day in red against the Swiss franc amid market speculation about Fed monetary easing. The pair has lost about 1.6% so far, breaking below nearly two-month lows at 0.9500 to consolidate around 0.9450 ahead of the conclusion of June’s monetary policy meeting.

The US dollar breaks below key support at 0.9500

The US dollar remains vulnerable on Wednesday, amid market speculation the Fed might be considering to control the bonds yield curve. The bank is widely expected to leave its benchmark rates unchanged although some voices anticipate that they might introduce new yield-control measures targeting the 10-year government bonds.

With the greenback losing ground across the board, the pair’s pullback from 0.9640 high on Monday has extended below late March lows at 0.9500 which has increased selling pressure on the USD.

USD/CHF testing support at 0.9460 area

The USD/CHF is now testing support at 0.9460 (61% Fibonacci retracement of March’s rally). Below here, the next potential targets might be 0.9390 (March 16 low) and 0.9320 (March 12 low). On the upside, the p[air should return above 0.9500 (March 27 low) to ease bearish pressure, and above here it might extend towards 0.9540 (Jun 5 low) and 0.9590 (April 15, May 1 lows).

USD/CHF key levels to watch