FXStreet (Mumbai) – The USD/CHF pair continues to trade around a flat-line over the last hours, meeting fresh supply near hourly 20-SMA at 1.0005 on every attempt to the upside.
USD/CHF stuck in 20-pips narrow range
Currently, the USD/CHF pair trades -0.09% lower at 0.9992, having posted day’s low at 0.9987 last minutes. The major extends its side-trend into early European trades, with the Swiss franc better bid on increased safe-haven demand as risk-off remained the main theme in Asia.
A major sell-off witnessed in global equities and commodity prices coupled with dismal China’s trade data added to the downbeat sentiment. Thus, investors flocked to safety-assets in a bid to protect their capital.
Moreover, broad based US dollar retreat after an extensive rally seen over the past two trading sessions also dragged UD/CHF lower. The US dollar index drops to 98.52, down -0.20% on the day. Whilst, focus now remains on Thursday’s SNB Monetary Policy Assessment and the presser for further insights on SNB’s interest rate outlook.
Analysts at RBS noted, “With some of the heat drawn from the European currency wars post the ECB decision, the SNB may now feel more comfortable keeping policy unchanged. Swiss data has been softer than expected and growth stalled in Q3 as the economy continues to adjust to a stronger CHF. “Hence, while we do not expect a rate cut this week, the SNB is likely to reaffirm its ‘two-pronged monetary policy approach’ of negative interest rates and a readiness to intervene in FX markets.”
USD/CHF Technical Levels
To the upside, the next resistance is located 1.0005 (1h 20-SMA) levels and above which it could extend gains to 1.0066 (1h 100-SMA). To the downside, immediate support might be located at 0.9952 (50-DMA) and below that 0.9909 (Dec 4 low).
(Market News Provided by FXstreet)