USD/CHF: On the bids around 0.9900 with eyes on Swiss trade balance

With a month-long rising support line limiting the USD/CHF pair’s declines, the quote pulls back to 0.9900 ahead of Tuesday’s European session. Traders are keeping an eye over the Swiss trade numbers as an immediate catalyst.

Not only Chinese diplomat’s pessimism concerning the trade deal with the United States (US), the US-China disagreement over Hong Kong protests recently contributed to the market’s risk-off sentiment. Also increasing uncertainty was the US President Donald Trump’s sustained push for easy monetary policy to the Federal Reserve (Fed) Chairman.

Further, Moody’s forecast concerning the global economic situation has been downbeat off-late. The global rating giant recently said that the global economy will remain fragile in 2020 as risks to credit conditions rise. It also said that rising political and geopolitical risks are exacerbating slow growth and reducing economies' abilities to respond to shocks.

That said, the US 10-year treasury yields remain under pressure around 1.80% while Asian stocks and S&P 500 Futures also act directionless.

Looking forward, October month trade numbers from Switzerland will offer an immediate catalyst to watch. The headlines Trade Balance flashed 4,020M figures last month while imports and exports grew 16,764M and 20,784M respectively. Following that the US housing market numbers and Fedspeak will entertain the pair traders.

Technical Analysis

Prices struggle between a 200-day EMA level of 0.9917 and a short-term rising support line at 0.9867 amid bearish signals from the 12-bar Moving Average Convergence and Divergence (MACD).