USD/CHF struggles for direction, consolidates in a range around 0.9200 mark

USD/CHF lacked any firm directional bias and remained confined in a range on Wednesday.
The risk-on impulse in the markets undermined the safe-haven CHF and extended support.
The emergence of fresh USD selling acted as a headwind and capped upside for the pair.

Haresh Menghani FXStreet

The USD/CHF pair seesawed between tepid gains/minor losses through the first half of the European session and was last seen trading in neutral territory, just above the 0.9200 mark.

A combination of diverging forces failed to assist the USD/CHF pair to capitalize on the overnight solid rebound from the monthly low, around mid-0.9100s and led to subdued price action on Wednesday. A positive risk tone undermined the Swiss franc's safe-haven status and extended some support. That said, the emergence of fresh US dollar selling acted as a headwind and capped upside for the major, at least for the time being.

The nervousness over the worsening situation in Ukraine eased after a Kremlin spokesperson said on Tuesday that Russia is still open to diplomacy and has an interest in that. Apart from this, the fact that new economic sanctions on Russia were not as bad as feared further boosted investors' confidence and triggered a fresh wave of the risk-on trade. This was evident from the strong performance across the global equity markets.

USD/CHF upside, however, remains capped amid modest USD weakness, which, so far, has failed to draw support from a fresh leg up in US Treasury bond yields. Apart from this, the risk of an imminent Russian invasion of Ukraine held back bullish traders from placing aggressive bets around the USD/CHF pair. This, in turn, warrants caution before positioning for any further appreciating move amid absent relevant economic releases.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9202
Today Daily Change	-0.0015
Today Daily Change %	-0.16
Today daily open	0.9217

Trends
Daily SMA20	0.9238
Daily SMA50	0.9203
Daily SMA100	0.9212
Daily SMA200	0.9179

Levels
Previous Daily High	0.9228
Previous Daily Low	0.9152
Previous Weekly High	0.9274
Previous Weekly Low	0.9188
Previous Monthly High	0.9343
Previous Monthly Low	0.9092
Daily Fibonacci 38.2%	0.9199
Daily Fibonacci 61.8%	0.9181
Daily Pivot Point S1	0.9169
Daily Pivot Point S2	0.9122
Daily Pivot Point S3	0.9093
Daily Pivot Point R1	0.9246
Daily Pivot Point R2	0.9275
Daily Pivot Point R3	0.9322

Author

Haresh Menghani

FXStreet

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

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