The USD/CHF pair, which eased to a new two-week low a few pips below the 0.96 handle, failed to push lower in the NA session and erased its daily losses. As of writing, the pair is at 0.9630, trading virtually unchanged on the day.
After the Federal Reserve Bank of New York announced that the headline business conditions index of the July 2017 Empire State Manufacturing Surve fell 10 points to 9.8, the US Dollar Index, which failed to preserve its recovery gains above the 95 handle in the European session, faced a renewed selling wave and plummetted to its lowest level since September 9 at 94.80, pulling down the USD/CHF pair 0.9595.
However, as the pressure seen on the greenback started to ease later in the session, the pair found support and reversed its direction. Furthermore, following a flat start to the day, major equity indexes in the U.S. gained traction, helping investors move away from safe havens. Nevertheless, before the second quarter earnings data from Goldman Sachs, Bank of America, Microsoft, and eBay are out this week, we may not be able to see sharp movements in the stock markets.
The risk sentiment and the greenback movements should continue to dominate the pair price-action in the short-term as the economic calendar won't be offering any significant macro data until the ECB announces its monetary policy decision on Thursday.
The RSI indicator on the daily and H4 charts remain below the 50 handle, suggesting that the bearish pressure is persistent. A daily close above the 0.96 handle could open the door to 0.9550 (Jun. 29 low) and 0.9500 (psychological level). On the upside, resistances could be seen at 0.9635 (20-DMA), 0.9700 (psychological level/Jul. 14 high) and 0.9735 (Jun. 26 high).
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