USD/CHF flat-lined around mid-0.9600s, SNB and US CPI awaited
The USD/CHF pair seesawed between tepid gains/minor losses and lacked any firm directional bias amid lackluster trading action on Thursday.
The pair held steady around 0.9640/50 band and was seen consolidating its recent strong gains of around 240-pips from 2-year lows touched last Friday. A combination of diverging forces failed to assist the pair to build on its near-term bullish trajectory since the beginning of this week.
The US Dollar was underpinned by renewed optimism over the US President Donald Trump's pro-growth economic agenda, while the prevalent cautious environment was seen lending some support to the Swiss Franc's safe-haven appeal.
• Uncertainty about US policy outlook & geopolitical risks affecting markets - NAB
Moreover, traders also seemed refraining from placing aggressive bets ahead of SNB's quarterly monetary policy assessment and the latest US CPI print, which further contributed to the pair's subdued price-action through Asian trading session on Thursday.
Meanwhile, the BoE decision-led volatility in the FX market might also influence safe-haven demand and help market players grab some short-term trading opportunities.
Technical levels to watch
A follow through bullish traction beyond 0.9660 level should lift the pair towards 100-day SMA hurdle near the 0.9690 region, above which the momentum could get extended towards 0.9720-25 area.
On the flip side, weakness below 0.9620 level now seems to find support near the 0.9600 handle, which if broken could accelerate the fall back towards mid-0.9500s en-route 0.9520-10 strong horizontal support.
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
