- USD/CHF traded with a mild positive bias through the first half of the European session.
- The uptick lacked any strong follow-through amid a softer tone around the greenback.
- Sustained move beyond the 0.9160-65 needed to confirm any further appreciating move.
The USD/CHF pair was seen hovering near the top end of its weekly trading range, just above mid-0.9100s, albeit lacked any strong follow-through buying.
The pair struggled to capitalize on its goodish rebound from the 0.9085 region, or four-week lows and has been consolidating in a range over the past three trading session. The impasse over the next round of the US fiscal stimulus measures held the US dollar bulls from placing any aggressive bets. This, in turn, was seen as a key factor capping gains for the major.
Meanwhile, the downside seemed cushioned near 50-day SMA amid fresh coronavirus jitters, which continued lending some support to the greenback's status as the global reserve currency. Investors remain concerned that a steep rise in new coronavirus cases could lead to renewed lockdown measures and hinder global economic recovery.
From a technical perspective, the recent range-bound price action warrants some caution before placing any aggressive directional bets. However, the fact that the USD/CHF pair has found acceptance above 50-day SMA favours bullish traders and supports prospects for additional gains. However, bulls might still need to wait for some follow-through buying beyond the 0.9160-65 region before positioning for any further appreciating move towards the 0.9200 mark.
Market participants now look forward to the US monthly Retails Sales figures for some impetus. Friday's US economic docket also features the Industrial Production data and the preliminary estimate of the October Michigan Consumer Sentiment Index. This, along with the broader market risk sentiment might produce some short-term trading opportunities around the USD/CHF pair.
Technical levels to watch
|Today last price||0.915|
|Today Daily Change||0.0006|
|Today Daily Change %||0.07|
|Today daily open||0.9144|
|Previous Daily High||0.9155|
|Previous Daily Low||0.9127|
|Previous Weekly High||0.9203|
|Previous Weekly Low||0.9093|
|Previous Monthly High||0.9296|
|Previous Monthly Low||0.8999|
|Daily Fibonacci 38.2%||0.9144|
|Daily Fibonacci 61.8%||0.9138|
|Daily Pivot Point S1||0.9129|
|Daily Pivot Point S2||0.9114|
|Daily Pivot Point S3||0.9101|
|Daily Pivot Point R1||0.9157|
|Daily Pivot Point R2||0.917|
|Daily Pivot Point R3||0.9186|
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