USD/CHF Bulls Face Resistance at Yearly Highs Ahead of Fed Decision

The USD/CHF exchange rate has recovered from its August lows and is now approaching the yearly highs. The three-week rebound has maintained the bullish outlook, but buyers are facing resistance at the same zone that capped the advance last month.

The Federal Reserve's interest rate decision next week will be a crucial factor in determining whether the bulls can clear this hurdle and open up a larger advance. The weekly technical chart for USD/CHF shows battle lines drawn between the bulls and bears.

Inflation data released earlier this month showed that consumer prices rose 3.4% from a year ago, slightly hotter than expected. This could impact the Fed's decision on interest rates, with Chairman Kevin Warsh indicating that reining in price pressures remains their primary focus.