The Greenback is holding firm this morning as Jerome Powell and the Fed get set to deliver their March statements. With just over an hour until much-anticipated announcements hit news wires, the USD/CHF (+0.30%), USD/CAD (+0.27%), and USD/JPY (+0.21%) all favor the USD. However, there is some hesitation toward the Greenback, as evidenced by flat performance of the EUR/USD (+0.02%) and GBP/USD (-0.05%).

Over the past week or so, we have gone into detail about what to expect from today’s Fed Announcements. In short, the markets aren’t forecasting much from the event. Nonetheless, it’s worth noting where the CME FedWatch Index stands ahead of Chairman Jerome Powell’s presser:

• Today, there’s a 100% chance of rates being held static at 0.0-0.25%.
• At the April, June, September, November, and December meetings, there is a 4.2% chance of a 25 bps rate hike from current levels.

All in all, it looks like the markets believe that the Fed is going to maintain its exceedingly dovish tone until at least January 2022. At this point, the big question pertains to the Fed’s ongoing bond and mortgage-backed securities purchases. Most experts disagree that talk of “tapering” the massive program will be on the docket for today. Just the same, U.S. 10-year bond yields have hit 1.685%, exceeding pre-COVID-19 levels from last February.

For the USD/CHF, bidders are dominating today’s session. Let’s dig into the daily technicals and check out two key support levels.

A Pre-Fed Uptick For The USD/CHF

Right now, the intermediate-term bullish trend in the USD/CHF is going strong. Rates are above 0.9275 and within striking distance of yearly highs.

Here are two support levels worth watching as the Fed gives their March announcements:

• Support(1): Daily SMA, 0.9253
• Support(2): 38% Current Wave, 0.9242

Bottom Line: If we see the USD/CHF pull back later today, a long trading opportunity may come into play. For the remainder of the session, I’ll have buy orders queued up from 0.9254. With an initial stop loss at 0.9239, this trade produces 15 ticks on a standard 1:1 risk vs reward ratio.