USD/CHF struggles for direction, stuck around 0.9200 ahead of Russia-Ukraine peace talks

USD/CHF remained confined in a narrow trading band heading into the North American session.
Signs of stability in the equity markets undermined the safe-haven CHF and extended support.
Modest USD strength also contributed to limiting the downside, though geopolitics capped gains.

Haresh Menghani FXStreet

The USD/CHF pair oscillated in a narrow trading band heading into the North American session and was last seen hovering around the 0.9200 mark, nearly unchanged for the day.

The pair struggled to capitalize on its gains recorded over the past two trading sessions and witnessed subdued/range-bound price action on Thursday, though a combination of factors acted as a tailwind. Stable performance in the equity markets undermined the safe-haven Swiss franc and extended some support to the USD/CHF pair amid modest US dollar strength.

Ukraine's Presidential Adviser said that the delegation is headed for the second round of talks with Russia, which is set to start in a couple of hours. This, in turn, helped ease concerns about the recent escalation in geopolitical tensions, instead revived hopes of a ceasefire between Russia and Ukraine and led to modest recovery in the risk sentiment.

In the latest development, Russian President Vladimir Putin told his French counterpart Emmanual Macron on Thursday that the goals of Russia's operation in Ukraine will be achieved in any case. This comes on the back of reports that Russia has intensified the bombardment of Ukrainian cities, which should keep a lid on any optimistic move in the markets.

On the other hand, the USD drew support from the overnight hawkish comments by Fed Chair Jerome Powell, saying that the US central bank could take tougher action if inflation levels do not come down. Moreover, Chicago Fed President Charles Evans said that monetary policy is currently wrong-footed and needs to be upwardly adjusted toward neutrality.

The fundamental backdrop seems tilted in favour of bullish traders, though investors seemed reluctant and remain wary of the worsening situation in Ukraine. Hence, the incoming headlines surrounding the Russia-Ukraine saga would continue to play a key role in influencing the USD/CHF pair. Apart from this, traders will take cues from Fed Chair Jerome Powell's second day of testimony.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9203
Today Daily Change	-0.0002
Today Daily Change %	-0.02
Today daily open	0.9205

Trends
Daily SMA20	0.9224
Daily SMA50	0.9201
Daily SMA100	0.9208
Daily SMA200	0.9186

Levels
Previous Daily High	0.924
Previous Daily Low	0.9166
Previous Weekly High	0.9289
Previous Weekly Low	0.915
Previous Monthly High	0.9297
Previous Monthly Low	0.915
Daily Fibonacci 38.2%	0.9212
Daily Fibonacci 61.8%	0.9194
Daily Pivot Point S1	0.9167
Daily Pivot Point S2	0.913
Daily Pivot Point S3	0.9094
Daily Pivot Point R1	0.9241
Daily Pivot Point R2	0.9277
Daily Pivot Point R3	0.9314

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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