On Wednesday, the USDCHF pair was seen 0.2% weaker during the early US session, trading at around 0.9060.
Later in the day, the FOMC’s meeting will conclude and if the central bank is dovish again, which is widely expected, the US dollar might drop further.
The key supports now seem to be near 0.9050 and afterward at the current cycle lows of 0.90. If this level is broken to the downside, the long-term bearish would be confirmed and a larger decline occur.
Alternatively, if the Fed disappoints the markets today, the USDCHF pair might rally a bit. The initiate target could be at 0.91 and afterward at last week’s highs near 0.92.
It is hard to imagine a scenario where the USD will appreciate as the central bank wants to run inflation high and that is clearly a bearish impetus for the greenback.