Despite a long weekend in the United States, volatility has decreased, and USD/CHF is trying to find direction. Detailed justification for a 25 basis point increase in interest rates will be included in the Fed minutes. The Swiss Franc asset attempts to break through the trendline that descends from 0.9600.

The USD/CHF pair fluctuated in the early Asian session inside a constrained range of 0.9230. Following in the footsteps of the US Dollar Index, the Swiss Franc asset has made a lateral move (DXY). Due to a more extended American weekend, lower trading activity, and a holiday on Monday in honor of Presidents’ Day, the Dollar Index could not discern a clear shift.

Market attention is moving to publish the Federal Reserve (Fed) minutes and the preliminary S&P PMI (Feb) numbers. The Fed’s minutes will thoroughly justify the rate increase of 25 basis points (bps) at the February monetary policy meeting.

Martin Schlegel, vice chairman of the Swiss National Bank (SNB), failed to support the Swiss franc with his remarks. According to SNB Schlegel, the central bank is “still ready” to participate in the foreign exchange markets to further its price stability objective.

On a four-hour timeframe, the trendline breakout that descends from the high of November 21 is being tested by the USD/CHF. A test of a trendline breakthrough without significant negative pressure often signals the strength of the bulls and establishes a foundation for a solid uptrend to follow.

The Swiss Franc asset is attempting to move its auction above the 200-period Exponential Moving Average (EMA) at 0.9245.

In the meanwhile, the bullish range of 60.00 to 80.00 has not been maintained by the Relative Strength Index (RSI) (14). If the momentum oscillator can take back the 60.00-80.00 zone, a bullish momentum will be set off.

The Swiss Franc asset has to confidently break over the February 6 high of around 0.9290 to go to new highs on the upside of the January 12 high at 0.9363 and January 6 high at 0.9410.

In a different scenario, the asset would be dragged toward the round-level support at 0.9100 by a collapse below the low from February 9 at 0.9161. The asset will be dragged toward the February low of 0.9059 if it slips below the latter.

USD/CHF four-hour chart