• Bulls struggle to build on/sustain above the parity mark.
• Subdued USD demand does little to lend any support.
• Cautious mood further collaborates towards capping gains.
The USD/CHF pair struggled for a firm directional bias and seesawed between tepid gains/minor losses through the early European session.
After yesterday's good two-way moves, led by the US President Donald Trump's comments on the Fed's monetary tightening, the pair was seen consolidating in a range within a familiar trading range held over the past one week or so.
Despite last bullish breakout, the pair faced difficulty in building on/sustaining its strength beyond the parity mark, with a combination of negative factors further collaborating towards keeping a lid on any meaningful up-move on the last trading day of the week.
The US Dollar bulls remained on the back-foot through the early European session, which coupled with a weaker tone around European equity markets underpinned the Swiss Franc's safe-haven demand and was seen weighing on the major.
In absence of any major market-moving economic data, it would be prudent to wait for a decisive break through the near-term trading range before positioning for the pair's next leg of directional move.
Technical levels to watch
The 0.9960 level is likely to protect the immediate downside and is followed by support marked by weekly lows, around the 0.9925 region, below which the pair could fall to test the 0.9900 handle.
On the flip side, any meaningful up-move beyond the parity mark is likely to confront resistance near the 1.0025 area, which if cleared might lift the pair back towards a one-year high level of 1.0068.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD stays below 1.0800 after upbeat US data
EUR/USD stays under bearish pressure and trades slightly below 1.0800 in the American session on Thursday. The data from the US showed that the real GDP growth for the fourth quarter got revised higher to 3.4% from 3.2%, supporting the USD and weighing on the pair.
GBP/USD stays in daily range above 1.2600
GBP/USD fluctuates in a narrow channel above 1.2600 on Thursday. The better-than-expected Initial Jobless Claims data from the US and the upward revision to the Q4 GDP growth helps the USD stay resilient against its rivals and limits the pair's upside.
Gold clings to strong daily gains above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Friday. The benchmark 10-year US Treasury bond yield stays above 4.2% after upbeat US data and makes it difficult for XAU/USD to preserve its bullish momentum.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
Portfolio rebalancing and reflation trades emerge into Q2
Yesterday’s price action pointed at a possible end-of-quarter portfolio rebalancing as the session saw the laggards of the quarter like Apple and Tesla gain, and the stars like Microsoft and Nvidia retreat.