USD/CHF near session high, focus remains on FOMC

Having posted a daily low at 0.9608, the USD/CHF pair is seen extending its rebound from yesterday's multi-week low level and is now trading close to session high around 0.9635 region.

Greenback recovery across the board and disappointing Swiss ZEW Economic Expectations index supplemented yesterday's hawkish comments from New York Fed president William Dudley and is contributing to the pair's recovery on Wednesday. 

FOMC meeting minutes, later during US trading session remains the key overhang that might restrict further recovery. However, should the minutes reveal central bank's readiness to raise interest-rates, sooner rather than later, it could trigger a sharp short-covering rally around the USD/CHF major.

How strong has the move been?

The FXStreet OB/OS Index is reflecting neutral hourly conditions, while the FXStreet Trend Index is slightly bullish. Currently RSI is at 57.84, up from the last hourly print at 48.44, with ADX at 15.58, down from its previous close at 22.37.

Daily RSI sits at 35.95, in neutral territory. Looking to momentum indicators, the hourly 200 SMA is currently at 0.9664, down from the last close at 0.9749 and declining. Over the past 20 days, the exponential average closing price is 0.9758, and trending lower.

Price levels to be considered

Next resistance can be seen at 0.9649 (Daily Classic PP), 0.9689 (Weekly Classic S1), 0.9705 (Hourly 100 SMA) and 0.9708 (Daily Classic R1). Support below can be found at 0.9619 (Monthly Low), 0.9619 (Weekly Low) and 0.9619 (Daily Open).

Regarding candlestick formations, we can see Doji formation on the 1-hour and a Piercing Line formation on the 4-hour chart.