USD/CHF is trading at 0.9178; down 0.70% amid Key Fed events this week

FXstreet.com (Athens): USD/CHF hit a low of 0.9161 a bit earlier, after the release of dismal Fed National Activity index

USD/CHF under pressure on heightened pre-FOMC volatility

Chicago Fed National Activity index came across the board a bit earlier, disappointing investors (-0.15 versus -0.10 expected, from -0.23 the previous one). In the week ahead U.S housing data, the FOMC meeting minutes and unemployment claims are the major events. The Fed is going to release its FOMC meeting minutes from July 30-31 this coming Wednesday’s night, and the market remains uncertain of the Fed’s QE tapering schedule. Meanwhile economists expected U.S existing home sales to reach 5.27 million from 5.08m units in June. On Thursday, a small increase to 322k from 320k is projected for U.S unemployment claims, while a small recovery is expected for Chinese manufacturing purchase manager’s index. Finally, on Friday a small decline to 492k is expected from 497k units for U.S new home sales. Therefore, while today it is another day absent of noteworthy data from Europe or North America, traders have been honed in on QE3, i.e. whether or not, the ‘tapering’ will come to fruition in September.

USD/CHF Key levels

The FXstreet.com Trend Index shows the pair to be slightly bearish, while RSI is in oversold levels. Daily pivot point support can be found at 0.9158, 0.9124, 0.9100 0.9376 and resistance 0.9262, 0.9310 and 0.9400 respectively.

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