USD/CHF treads water near mid-0.97s amid a lack of catalysts
The USD/CHF pair is fluctuating in a tight 30-pip range on Monday and is having a difficult time setting its next short-term direction. As of writing, the pair was at 0.9755, gaining 0.11% on the day.
In the previous week, the pair closed lower losing 80 pips as the greenback struggled to extend its rally that started in mid-September. The US Dollar Index, which refreshed its highest level in more than two months at 94.10 in the early October, finished the week a little below the 93 mark. Despite a lack of fundamental catalysts, the DXY started the week on a positive note and was last seen at 93.03, gaining 0.12% on the day. However, the index's movement on Monday seems to be nothing more than a technical correction of last week's losses.
In the remainder of the day, the economic docket from the U.S. won't be featuring any macroeconomic data that could impact the pair's price action. In premarket trading, major equity indexes are modestly higher and a positive mood around the stocks could help the pair push higher.
Technical outlook
The initial hurdle for the pair could be seen at 0.9780 (200-DMA) ahead of 0.9835 (Oct. 6 high) and 0.9900 (psychological level). On the downside, supports align at 0.9730 (20-DMA), 0.9700 (psychological level) and 0.9640 (100-DMA). The RSI indicator on the daily graph is moving sideways a little above the 50 mark, not providing any clues regarding a momentum buildup in either direction.
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.
