- Fading US-China trade optimism benefitted the Swiss Franc’s safe-haven status and exerted some downward pressure around the USD/CHF pair on Thursday.
- The pair stalled this week’s recovery move from yearly lows and faced rejection near a resistance marked by 38.2% Fibo. level of the 1.0016-0.9693 recent slump.
Despite the intraday pullback, the pair has managed to defend 23.6% Fibo. level and also held above 100-hour SMA, suggesting some dip-buying interest, though bearish oscillators on hourly charts warrant caution for aggressive traders.
Diverging indications on the 1-hourly chart now seem to suggest indecision over the pair’s intraday momentum, which might lead to a consolidative price action amid trade uncertainty ahead of Trump-Xi meeting later this week.
Hence, it would be prudent to wait for a sustained move in either direction before positioning for any meaningful trading opportunities – either towards 200-hour SMA resistance near mid-0.9800s or retesting sub-0.9700 level or yearly lows.
USD/CHF 1-hourly chart
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