USD/CHF remains below 100-DMA

After refreshing its two-week low at 1.0060 region, the USD/CHF pair is having a difficult time correcting its losses amid a persistent selling pressure witnesses on the greenback. At the moment, the USD/CHF is down 0.4% at 1.0075.

Although the markets see a March rate hike as a done deal, they are still skeptical about the Fed's ability to stay in line with the 'dot plot' indication of three hikes. Quarterly projections for GDP, inflation and unemployment will be closely watched by the participants as they could provide further insights regarding the pace of future rate hikes.

SNB

The Swiss central bank is expected to keep its deposit rate unchanged at -0.75% and reiterate its pledge to intervene in currency markets, according to the median estimate in a Bloomberg survey of 33 economists. “The SNB will adjust rates only if there’s a situation causing a lasting appreciation of the franc,” said Manuel Ferreira, head of investment strategy and economic research at Zuercher Kantonalbank. “To react to a political event that may not even happen, that would be wasting your gunpowder.”

Technical levels to watch

Supports for the USD/CHF could be found at 1.0060 (daily low), followed by 1.0040 (Fib. 38.2% - Jan. – Feb. Fall) and 1.0000 (psychological level). On the flip side, resistances are aligned at 1.0090 (100-DMA/20-DMA), 1.0150 (Fib. 78.6%) and 1.0170 (Mar. 7 high).