USD/CHF struggles to rise above 0.97 as greenback stays under pressure
After dropping to a fresh 2-day low at 0.9674 in the late Asian session, the USD/CHF pair struggled to make a meaningful recovery. Although the pair tested the 0.97 handle during the European session, the bullish momentum faded away as the greenback continued to erase its FOMC-led gains.
The US Dollar Index, which was able to close the day a tad above the 92 mark on Thursday, slid to 91.60 as the hawkish FOMC statement's positive impact vanished. As of writing, the index was at 91.80, losing 0.2% on the day. Later in the session, Markit is going to release the PMI data for the service and the manufacturing sector in the U.S. Nevertheless, this data is unlikely to change the negative surrounding the buck.
On the other hand, the CHF found some demand on Friday as a traditional safe-haven as the poor performance of the major European stock indexes suggested a weak risk appetite. In case Wall Street starts the day lower, the pair could struggle further to erase its losses.
Despite today's drop, the pair is headed for its second straight positive weekly close as it gains nearly 100-pips since Monday.
Technical outlook
The RSI on the daily graph is edging lower towards the 50 handle, suggesting that the bulls are running out of breath. On the downside, 0.9650 (20-WMA) can be seen as the first technical support. A weekly close above that level could allow for fresh rising attempts early next week. 0.9600 (psychological level) and 0.9535 (Sep. 5 low) align as next technical supports. On the upside, resistances are located at 0.9700 (psychological level/Sep. 14 low), 0.9745 (Sep. 21 high) and 0.9800 (psychological level/May 29 high).
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
