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).