Markets Poised Ahead Of FOMC Statement Later Today

• 13 Dec 2017

USD/CHF

The Federal Reserve is expected to hike the Federal Funds Rate to 1.5% in December’s FOMC Meeting. The hike has been anticipated and in ways, priced into the market. However, the FOMC Statement later on today may give clues regarding the pace of the Fed’s Forward Guidance policy going into 2018.  A rejection of the 0.993 price level has resulted in a moderate bearish move for the USD/CHF pair. A series of doji candles represent a pause in the market, likely in anticipation of the Fed rate decision later today.

Impact event: The Federal Funds Rate Decision at 21:00 GMT+2 will likely impact all USD pairs.

CHF/JPY

The CHF/JPY pair is testing the 114.63 price level after a strong bullish run. Momentum indicators confirm bullish sentiment as MACD is approaching a break of the zero line to the upside. However, doji candles do indicate indecision and declining volume may result in the pair rejecting the 114.63 price level. Fundamental factors will likely play a role in the near-term direction for the pair.

AUD/CHF

The Australian dollar is beginning to gather strength over the Swiss Franc as the pair has broken the 20-period EMA to the upside and is testing the 0.750 price level. The pair has previously rejected this resistance line, however, momentum indicators indicate that sentiment is turning more positive.

NZD/CHF

The NZD/CHF has broken the 20- period EMA with a strong bullish breakout. The pair is now testing the 0.688 price line which represents a moderate resistance level for the pair. A break of this price level would provide weight to the uptrend, with momentum indicators showing positive trajectories. MACD is fast approaching the zero line which will give further confirmation of bullish momentum.