USD/CHF flirting with 100-DMA support near parity mark

Haresh Menghani FXStreet

The USD/CHF pair remained under some selling pressure on Thursday and extended its reversal move from previous session's 4-week high level beyond 1.0100 mark.

Currently hovering around 100-day SMA support near 1.0010 region, persistent US Dollar weakness has been a key driver of the pair's downslide on Thursday. Despite of Wednesday's upbeat US economic data and growing prospects for an eventual Fed rate-hike action, sooner-rather-than-later, investors seemed reluctant to initiate fresh long position amid prevalent uncertainty over the US President Donald Trump's economic policies.

Moreover, the prevalent cautious sentiment around European equity markets was also seen driving flows towards traditional safe-haven currencies, including the Swiss Franc, and further collaborated to the pair's offered tone on Thursday. With today's downslide, the pair reversed all of its gains recorded Monday & Tuesday, and turned negative for the week.

Moving ahead, traders now look forward to the US economic docket that includes the release of - weekly jobless claims, housing starts, building permits and Philly Fed manufacturing index, for some immediate respite for the greenback.

Technical levels to watch

A follow through selling pressure below parity mark, the pair is likely to drift towards 0.9975 horizontal support before eventually dropping to test 0.9930 support area. On the upside, momentum back above 1.0050 level might now confront resistance near 1.0075-80 region above which the pair is likely to make a fresh attempt towards conquering 1.0100 handle and head towards retesting 1.0115-20 strong resistance.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0106

100% Bullish
0% Bearish
0% Sideways

Bias Bullish

1 Month

Avg Forecast 1.0124

50% Bullish
25% Bearish
25% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.0345

69% Bullish
8% Bearish
23% Sideways

Bias Bullish

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD flirts with daily lows near 1.3630

GBP/USD has quickly given back Friday’s solid gains, turning lower at the start of the week and drifting back towards the 1.3630 area. The focus now shifts squarely to Tuesday’s UK labour market report, which is likely to keep the quid firmly in the spotlight and could set the tone for Cable’s next move.

Gold battle around $5,000 continues

Gold is giving back part of Friday’s sharp rebound, deflating below the key $5,000 mark per troy ounce as the new week gets underway. Modest gains in the US Dollar are keeping the metal in check, while thin trading conditions, due to the Presidents Day holiday in the US, are adding to the choppy and hesitant tone across markets.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

The week ahead: Key inflation readings and why the AI trade could be overdone

It is likely to be a quiet start to the week, with US markets closed on Monday for Presidents Day. European markets are higher across the board and gold is clinging to the $5,000 level after the tamer than expected CPI report in the US reduced haven flows to precious metals.

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.