USD/CHF flirting with 100-DMA support, Trump in focus
|After failing to build on to its move back above 1.0100 handle, the USD/CHF pair witnessed a sharp reversal and erased all of its gains recorded in the previous two trading sessions.
Currently trading around 1.0050 region, today's release of better-than-expected Swiss KOF leading economic indicator for Feb., at 107.2 vs 102.1 expected, attracted a follow through selling pressure around the major, which was already trading weak amid a modest US Dollar weakness across the board.
Meanwhile, the prevalent cautious sentiment around global financial markets also extended support to the Swiss Franc's safe-haven appeal and collaborated to the pair's slide back closer to 100-day SMA important support near 1.0035 region.
Investors on Tuesday will remain focused on the US President Donald Trump's first address to a joint session of Congress, later during NY session, and would be looked upon for clarity over Trump's proposed pro-growth economic policies, which would eventually help determine the pair's next leg of directional move.
President Trump’s address to congress: Clearer guidance? - Nomura
Apart from Trump's speech, important US macro data - prelim Q4 GDP figures, Chicago PMI and CB's Consumer Confidence Index would also be looked upon for some impetus during early NA session.
Technical levels to watch
Follow through weakness below the 1.0035 region (100-day SMA) is likely to get extended towards 1.0010 level before the pair eventually drops to 0.9970-60 horizontal support. On the flip side, momentum above 1.0060 level seems to lift the pair back towards 1.0100 handle ahead of multi-week tops resistance near 1.0140 area.
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