The USD is on the ropes against the majors, with losses vs the Swiss franc leading the way. With only a few hours left in the forex session, the USD/CHF has plummeted by more than 80 pips toward Fibonacci support. Currency traders are exiting the Greenback and U.S. stocks as safe-havens gain traction during this pre-FED session.

On the U.S. economic news front, there wasn’t a whole lot scheduled for today. Here’s a quick look at the highlights:

Event                                                                       Actual               Projected      Previous

NFIB Business Optimism Index (May)                 94.4                       86.0                90.9

IBD/TIPP Economic Optimism (MoM, June)       47.0                         NA                  49.7

JOLTS Job Openings (April)                                 5.046M                    5.000M          6.011M

This group of metrics really doesn’t tell us a whole lot and is peripheral at best. The headliner is the NFIB Business Optimism Index (May), which came in well above expectations. JOLTS Job Openings (April) are down, which suggests that people are headed back to work and that some positions have been lost due to the pandemic. All in all, economic activity remains depressed but is showing signs of recovery.

Currently, the bears are in control of the USD/CHF. Let’s take a look at a key Fibonacci support level that is quickly coming into view.

Fibonacci Support In Play For The Swissy

A strong intraday downtrend has hit the USD/CHF. Weekly Fibonacci support at 0.9457 is on the horizon and may come into play ahead of Wednesday’s FED meeting.

Here is the key level to watch in this market:

• Support(1): 62% Fibonacci Retracement, 0.9457

Bottom Line: Until elected, I’ll have buy orders in USD/CHF queued up from just above Fibonacci support at 0.9459. With an initial stop loss at 0.9424, this trade produces 25 pips on a sub-1:1 risk vs reward ratio.