- US Dollar Index fails to stay in the positive territory in the NA session.
- Wall Street struggles to pare losses.
- USD/CHF remains on track to close the second straight day lower.
After rising to a daily high at 0.9970 in the early NA session, the USD/CHF pair retraced its gains and turned flat on the day near mid-0.99s. Although it looked like the pair had gone into a consolidation phase near that level, it came under a renewed selling pressure in the US afternoon and touched a fresh daily low at 0.9928. As of writing, the pair was trading a couple of pips above that level and losing 0.25% on the day.
The lack of macroeconomic data releases on Wednesday left the greenback at the mercy of T-bond yields. The highly-anticipated note auction's results saw $26 billion worth of 10-year notes selling at a high yield of 2.960%, which weighed on the 10-year T-bond yields and pulled the DXY back toward the 95 mark. At the moment, the DXY is down 0.12% on the day at 95.07.
In the meantime, after starting the day slightly lower, major equity indexes in the U.S. remained in the red to suggest that investors are not eager to move on to the risk-sensitive assets yet, which benefits traditional safe-havens such as the JPY and the CHF. In fact, the USD/JPY pair is looking to close the day below the 111 mark with a daily loss of nearly 40 pips.
Technical levels to watch for
The pair could encounter the first technical support at 0.9910/0.9900 (100-DMA/psychological level) ahead of 0.9865 (Jul. 31 low) and 0.9790 (Jun. 7 low). On the upside, resistances could be seen at 0.9970 (daily high), 1.0000 (parity level) and 1.0065 (Jul. 13 low).
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