• USD/CHF oscillated in a range below 0.8900 mark through the early European session.
  • The upbeat market mood undermined the safe-haven CHF and extended some support.
  • Retreating US bond yields kept the USD bulls on the defensive and capped the upside.

The USD/CHF pair struggled for a firm intraday direction and remained confined in a narrow trading band, below the 0.8900 mark through the early European session.

A combination of diverging forces failed to provide any meaningful impetus to the major, rather led to a subdued/range-bound price action on Thursday. The downside remains cushioned amid the prevalent risk-on environment, which tends to undermine demand for the safe-haven Swiss franc.

The market has been pricing in the prospects for more aggressive fiscal spending in 2021 under Joe Biden's presidency. The bets increased further after Biden pitched a plan to pump $1.9 trillion into the struggling US economy during his first hours as the new US President on Wednesday.

This comes amid the optimism over the rollout of vaccines for the highly contagious coronavirus disease and fueled hopes for a strong economic recovery. This, in turn, continued boosting investors' confidence and remained supportive of the ongoing rally across the global equity markets.

On the other hand, the US dollar remained depressed for the fourth consecutive session and was further pressured by a weaker tone around the US Treasury bond yields. This was seen as one of the key factors that capped gains and held the USD/CHF pair well within the previous day's trading range.

Market participants now look forward to the US macro data in order to grab some short-term trading opportunities. Thursday's US economic docket features the release of Philly Fed Manufacturing Index, Initial Weekly Jobless Claims and housing market data – Building Permits and Housing Starts.

Technical levels to watch

USD/CHF

Overview
Today last price 0.8888
Today Daily Change -0.0006
Today Daily Change % -0.07
Today daily open 0.8894
 
Trends
Daily SMA20 0.8864
Daily SMA50 0.8936
Daily SMA100 0.9036
Daily SMA200 0.9238
 
Levels
Previous Daily High 0.892
Previous Daily Low 0.8867
Previous Weekly High 0.892
Previous Weekly Low 0.8849
Previous Monthly High 0.9093
Previous Monthly Low 0.8794
Daily Fibonacci 38.2% 0.89
Daily Fibonacci 61.8% 0.8888
Daily Pivot Point S1 0.8868
Daily Pivot Point S2 0.8841
Daily Pivot Point S3 0.8814
Daily Pivot Point R1 0.8921
Daily Pivot Point R2 0.8947
Daily Pivot Point R3 0.8974

 

 

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news Join Telegram

Recommended content


Recommended content

Editors’ Picks

EUR/USD drops below 1.0550 as dollar gathers strength

EUR/USD drops below 1.0550 as dollar gathers strength

EUR/USD has lost its traction and declined below 1.0550 in the early American session on Tuesday. Hawkish comments from NY Fed President Williams and upbeat trade balance data from the US seem to be helping the dollar gather strength against its major rivals.

EUR/USD News

GBP/USD loses traction, closes in on 1.2200

GBP/USD loses traction, closes in on 1.2200

GBP/USD has turned south in the American session and slid toward 1.2200. The US Dollar Index continues to push higher above 104.00, suggesting that the dollar's valuation drives the pair's action ahead of consumer confidence data.

GBP/USD News

Gold bears eye $1,820 and $1,816 as next targets

Gold bears eye $1,820 and $1,816 as next targets

Optimism prevails, pointing to a turnaround Tuesday for the financial markets, as the previous week’s upbeat global momentum returns and caps the broad US dollar recovery. Investors remain wary ahead of the key NATO Summit.

Gold News

Former Ripple CTO is dumping millions of XRP, traders beware

Former Ripple CTO is dumping millions of XRP, traders beware

XRP price shows promise that it is ready to trigger a massive run-up as the first half of the year comes to an end. There are three reasons why investors should be bullish on Ripple.

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Forex MAJORS

Cryptocurrencies

Signatures