- Gains some follow-through traction for the third straight session on Wednesday.
- A subdued USD demand/cautious mood seemed to keep a lid on the positive move.
The USD/CHF pair finally broke out of its daily consolidative range and climbed to one-week tops, around the 0.9940 region in the last hour.
The pair gained some follow-through positive traction for the third consecutive session on Wednesday and built on its recent bounce from mid-0.9800s, albeit lacked any strong follow-through amid a mildly weaker tone surrounding the US Dollar.
The upside remains limited
Following the previous session’s strong positive move, the USD bulls took some breather amid a modest pullback in the US Treasury bond yields and preferred to wait for fresh updates on the “phase one” trade deal between the world’s two largest economies.
This coupled with the prevalent cautious mood around equity markets extended some support to traditional safe-haven currencies, including the Swiss Franc, which might further collaborate towards keeping a lid on any runaway rally for the major, at least for now.
In absence of any major market-moving economic releases from the US, the broader market risk sentiment and the USD price dynamics might continue to act as key determinants of the pair’s momentum on Wednesday and produce some short-term trading opportunities.
Technical levels to watch
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