OctaFX | OctaFX Forex Broker
Open trading account
Back

USD/CHF in search of a firm direction, stuck in a range below parity mark

   •  Consolidate in a 2-week old trading band. 
   •  Range break to help determine near-term direction. 

The USD/CHF pair lacked any firm directional bias and seesawed between tepid gains/minor losses through the early European session on Wednesday.

Combinations of diverging factors have failed to provide the required momentum and help the pair to break through a 2-week old broader trading range. Renewed concerns over the long-awaited US tax bill kept the US Dollar bulls on the back-foot. 

However, positive trading sentiment around European equity markets, coupled with a modest uptick in the US Treasury bond yields pointed to investors’ appetite for riskier assets. Hence, fading safe-haven demand did little to boost the Swiss Franc and has eventually led to a lackluster/subdued trading action around the major.

In the absence of any relevant economic releases, traders would take cues from broader market risk sentiment/the US bond yield dynamics and extend its consolidative price action within narrowing trading range.

   •  USD/CHF sidelined so far – Commerzbank

Technical levels to watch

Immediate support is pegged near 0.9970 level, which is followed by support around 0.9945 horizontal level. A convincing break below the mentioned supports is likely to accelerate the slide back towards the 0.9900 handle.

On the flip side, momentum above the parity mark might continue to confront fresh supply near the 1.0035 area, which if cleared should pave the way for an extension of the pair's near-term upward trajectory towards the 1.0100 handle.
 

EUR/USD expected to hold around 1.1479 – Danske Bank

In opinion of Christin Tuxen, Chief Analyst at Commerzbank, the pair’s downside is seen facing decent support in the 1.1480 area. Key Quotes “EUR/US
Read more Previous

EUR/USD fails to resist above 1.1600, eyes on US tax reforms

The EUR/USD pair tries hard to maintain the bids above 1.16 handle, as the US dollar remains on the back foot amid US tax reforms uncertainty, while a
Read more Next
Start livechat