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USD/CHF comes down to parity level, remains in tight daily range

  • Majors stay quiet on the first trading day of the week.
  • Amid a lack of catalysts, consolidation is likely to persist.
  • New York President Dudley is scheduled to speak later in the session.

After inching higher to 1.0030 during the European trading hours, the USD/CHF pair lost its momentum and was last seen trading flat at 1.0005.

Price action suggests a technical correction

The pair ended the previous week with gains for the third straight week as the greenback preserved its strength against its peers on upbeat macroeconomic data releases from the United States. Today's subdued trading action is pointing to a technical consolidation move, which doesn't provide any clues over the next short-term direction. However, with the price floating above the critical parity level, buyers are likely to remain in control in the coming days. In the meantime, without the support of fundamental catalysts, the US Dollar Index is having a difficult time rising above the critical 95 level.

Later in the session, New York President William Dudley will be delivering a speech. Earlier in the day, a report by CNBC claimed that after President Trump's announcement of the nomination of Jerome Powell for the next Fed chair, Dudley, who worked very closely with Yellen during her term, is looking to retire in mid-2018 as well. 

Technical levels to consider

The RSI indicator on the daily graph continues to float between the 50 and 70 marks, suggesting that bulls are still strong. The initial hurdle for the pair could be seen at 1.0040 (Oct. 27/Nov. 1 high), 1.0080 (May 12 high) and 1.0155 (Mar. 8 high). On the downside, with a daily close below 1.0000 (parity/psychological level), the correction could extend toward 0.9900 (20-DMA), 0.9775 (200-DMA/20-DMA) and 0.9700 (100-DMA). 

  • USD/CHF stays focused on 1.0039 – Commerzbank

AUD/USD sits at session tops, around 0.7665 level

   •  Continues to find some support near 0.7640 level.    •  Still seems vulnerable to extend the depreciating move.    •  Focus remains on Tuesday
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