- USD/CHF struggles to set direction on Monday.
- Wall Street sticks to modest gains in the first half of the session.
- Consolidation is likely to continue until FOMC.
The USD/CHF pair is trading in a tight 35 pip range on Monday as investors are not looking to make large bets ahead of this week’s crucial central bank events. As of writing, the pair is virtually unchanged on the day at 0.9850.
The fact that there were no macroeconomic data releases from the United States making it even more difficult for most of the USD denominated pairs to set a short-term direction. The US Dollar Index, which tracks the greenback against a basket of currencies, is now moving sideways near mid-93s.
Meanwhile, major equity indexes in the United States started the day on a positive note and the Dow Jones Industrial Average and the S&P 500 were up 0.35% and 0.2% at the moment. The relatively positive market sentiment in the session is not allowing the CHF to show resilience against the buck as it struggles to find demand as a safe-haven.
Tuesday’s macroeconomic calendar won’t be featuring any data from Switzerland and investors will be waiting for the CPI figures from the United States to find the next potential catalyst.
Technical outlook
0.9800 (psychological level/100-WMA) remains as a critical support for the pair ahead of 0.9770 (Apr. 24 low) and 0.9710 (Apr. 29 low). On the upside, resistances are located at 0.9910 (Jun. 1 high), 1.0000 (psychological level/parity) and 1.0055 (May 10 high).
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