USD/CHF

The dollar continues to find good support thanks mainly to ongoing expectations that the Fed will be tightening its policy more aggressively relative other central banks in the near term outlook.
Since the beginning of the month all battles between bulls and bears run in a fairly narrow area, which unfortunately doesn’t create good investment opportunities. In today's alert, we looked at the broader perspective of EUR/USD and the USD Index itself.

We see the euro/U.S. dollar (EUR/USD) currency pair unfolding a slow and steady recovery from recent swing low, which we labeled as sub-wave ii) at around 1.2270 area.

On Friday, the Australian dollar declined against the greenback, which resulted in a decline to important support levels. Will they withstand the selling pressure in the coming week?

The USD/CHF remains fundamentally supported with the U.S. Federal Reserve being the most hawkish central bank out there, while the Swiss National Bank being among the most dovish.
The leading indicators for U.S. nonfarm payrolls report have been mostly weaker than expected, not least the employment component of the ISM non-manufacturing PMI, which was released earlier today.
The U.S. dollar/Swiss franc (USD/CHF) currency pair was the first major dollar pair to show strength this week and it has been the first to turn higher post FOMC.

USD/CHF

The USD/CHF spent the whole of last week consolidating in a very tight range around that psychologically-important 1.00 handle.