USD/CHF struggles to find direction, moves sideways near 0.9980
|- USD/CHF fails to hold above parity on Wednesday.
- US Dollar Index stays in range below the 97 mark.
- US markets are closed in honor of former President George H.W. Bush.
The USD/CHF pair, which rose above the critical parity mark earlier in the day, failed to make a decisive move on Wednesday as it fluctuates in a tight 30-pip range. In fact, the pair has been moving in a 100-pip consolidation channel since November 20, reflecting the neutral outlook.
After staging a strong rebound in the second half of the day on Tuesday, the US Dollar Index advanced to a daily high near 97.20 but failed to preserve its momentum as the greenback weakened against its European rivals. However, amid a lack of fundamental drivers behind that move, the index didn't have a hard time finding support near 96.80 and was last seen at 96.95, where it was virtually flat on the day.
With US markets staying closed today in honour of former President George H.W. Bush, who died Nov. 30 at the age of 94, the pair is likely to stay quiet in the NA trading hours. Later in the day, the Federal Reserve is scheduled to publish its Beige Book. Tomorrow's macroeconomic calendar from the U.S. will feature ADP employment report, trade balance, weekly jobless claims, and nonfarm productivity data.
Technical levels to consider
On the upside 1.0000 (psychological level/parity/daily high) aligns at the first critical resistance for the pair ahead of 1.0065 (Nov. 5 high) and 1.0130 (Nov. 13 high). Supports, on the other hand, are located at 0.9960 (Dec. 3 low), 0.9925 (Nov. 28 low) and 0.9895 (200-DMA).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.