“¢ Global growth concerns hit risk appetite and underpin CHF’s safe-haven demand.
“¢ USD held steady near two-week tops and helped limit any meaningful downside.
“¢ Absent relevant market moving data might further lead to a subdued trading action.
The USD/CHF pair seesawed between tepid gains/minor losses through the mid-European session and consolidated its recent gains to near six-week tops.
A combination of diverging forces failed to provide any fresh impetus and assist the pair to build on this month’s strong up-move from the vicinity of the 0.9700 handle, or over three-month lows.
The prevalent risk-off mood, amid growing concerns over the health of the global economy, was seen underpinning the Swiss Franc’s relative safe-haven demand and kept a lid on the pair’s recent positive momentum.
Meanwhile, the US Dollar held firm near two-week tops, despite haven-driven weakness in the US Treasury bond yields and partly offset the negative factors, which was eventually seen lending some support and further collaborated to the pair’s subdued/range-bound price action.
It would now be interesting to see if bulls are able to make it through the parity mark or opt to take some profits off the table amid relatively thin US economic docket, featuring the second-tier release of existing home sales data.
Technical levels to watch
On a sustained move beyond the 1.00 round figure mark, bulls are likely to aim towards challenging 1.0050 intermediate resistance en-route the 1.0085-90 supply zone. On the flip side, mid-0.9900s now seems to protect the immediate downside, which if broken might prompt some long-unwinding trade and accelerate the slide back towards the very important 200-day SMA support near the 0.9900 handle.
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