After closing the previous day above the critical 200-DMA on Monday, the USDCHF pair is staying relatively quiet on Tuesday as USDCHF fluctuates in a range below mid-0.97s. What level could the pair face next?
11 September, OctaFX – As of writing, the pair was trading at 0.9740, down 0.1% on the day. Just like what we witnessed on Monday, the risk perception remains as the primary driver of the pair’s price action.
Despite a broad-based USD weakness yesterday, the pair recorded sharp gains on improved sentiment on the back of easing no-deal Brexit concerns. With latest headlines suggesting that British officials are misreading the statements from their European counterparts and making them sound more optimistic than they really are, the risk-aversion started to dominate the markets once again.
USDCHF Fluctuates in a Range Below Mid-0.97s
Despite the fact that the US Dollar Index rose to a fresh daily high at 95.35 in the last hour, the CHF didn’t have a hard time showing resilience as it continues to find demand as a safe-haven.
Furthermore, reports of China asking the World Trade Organization for authorization to impose retaliatory trade sanctions against the United States push investors further away from riskier assets.
Ahead of JOLTS Job Openings and wholesale inventories data from the U.S. later in the session, the US Dollar Index is up 0.15 on the day at 95.30.
Technical levels to consider
The pair could face the first resistance at 0.9800 (psychological level) ahead of 0.9870 (50-DMA) and 0.9900 (psychological level/100-DMA). On the downside, supports could be seen at 0.9730 (200-DMA), 0.9685 (Monday low) and 0.9640 (Sep. 7 low).
This article about USDCHF Fluctuates in a Range was provided by OctaFX. It should substitute for professional marketing consulting. Forex margin trading involves substantial risks. Forex margin trading exposes participants to risks including, but not limited to, changes in political conditions, economic factors, and other factors. All of which may substantially affect the price or availability of one or more foreign currencies.