USD/CHF Side-Lined Below 0.9700, Awaits Fresh Impetus
The US dollar extends its side-trend versus its Swiss counterpart in the early European trades, keeping USD/CHF in the upper band of 0.96 handle.
USD/CHF confined in a tight range
Currently,
the USD/CHF pair trades modestly flat at 0.9671, having faced stiff
resistance near 0.9680 region. The major trades around a flat-line this
session, consolidating the extensive rally witnessed yesterday after the
US dollar benefited across the board from hawkish Fed speaks and
risk-on rally in global equities.
At the moment, the USD/CHF pair
trades lacklustre as markets resort to profit-taking on their longs
heading into the US CPI report due later today. Although the pair
remains underpinned somewhat, finding support from broad based US dollar
rally. The USD index, which measures the relative value of the
greenback against a basket of six major currencies, now trades +0.27% at
95.08, at two-week highs.
Looking ahead, the major now awaits
the Swiss factory gate prices for fresh impetus, while the main market
moving event for today is expected to be the US inflation figures.
USD/CHF Technical Levels
To
the upside, the next resistance is located at 0.9700 (round number) and
above which it could extend gains to 0.9780 (50-DMA). To the downside,
immediate support might be located at 0.9633/29 (20-DMA & Daily
pivot) and below that 0.9600 (psychological levels/ 1h 50-SMA).
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