USD/CHF stays in range below mid-0.97s ahead of US data
|- Risk-off mood offsets USD strength.
- US Dollar Index continues to recover Monday's losses.
- US economic docket features JOLTS Job Openings and wholesale inventories.
After closing the previous day above the critical 200-DMA on Monday, the USD/CHF pair is staying relatively quiet on Tuesday as it fluctuates in a very tight 20-pip range. As of writing, the pair was trading at 0.9740, down 0.1% on the day.
Just like what we witnessed on Monday, the risk perception remains as the primary driver of the pair's price action. Despite a broad-based USD weakness yesterday, the pair recorded sharp gains on improved sentiment on the back of easing no-deal Brexit concerns. With latest headlines suggesting that British officials are misreading the statements from their European counterparts and making them sound more optimistic than they really are, the risk-aversion started to dominate the markets once again.
Despite the fact that the US Dollar Index rose to a fresh daily high at 95.35 in the last hour, the CHF didn't have a hard time showing resilience as it continues to find demand as a safe-haven. Furthermore, reports of China asking the World Trade Organization for authorization to impose retaliatory trade sanctions against the United States push investors further away from riskier assets.
Ahead of JOLTS Job Openings and wholesale inventories data from the U.S. later in the session, the US Dollar Index is up 0.15 on the day at 95.30.
Technical levels to consider
The pair could face the first resistance at 0.9800 (psychological level) ahead of 0.9870 (50-DMA) and 0.9900 (psychological level/100-DMA). On the downside, supports could be seen at 0.9730 (200-DMA), 0.9685 (Monday low) and 0.9640 (Sep. 7 low).
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