Search ForexCrunch
  • US Dollar Index fluctuates above 95 on Monday.
  • European stocks stick to small gains.
  • Coming up: Markit and IHS Manufacturing PMI reports from the U.S.

After spending the Asian session moving sideways in a tight range near the 0.98 mark, the USD/CHF pair gained traction during the European trading hours and advanced to its highest level since late August at 0.9848. However, in the absence of significant fundamental drivers on Monday, the pair struggled to push higher and was last seen trading at 0.9838, where it was up 0.2% on a daily basis.

Later in the session, both the IHS Markit and the ISM will be publishing their respective Manufacturing PMI reports. If these publications show a stronger-than-expected growth in the sector’s business activity, we could see the greenback gathering strength against its rivals. Ahead of the data, the US Dollar Index is virtually unchanged at 95.15. Moreover, FOMC members Bostic and Rosengren will be delivering speeches as well.

Meanwhile, a  recovery seen in the Italian bond yields today seems to be helping the market sentiment improve, which makes it difficult for the safe-haven CHF to find demand and show resilience vs the buck. As of writing, Germany’s DAX was up 0.5% on the day while the UK’s FTSE was adding 0.15%.  

Technical levels to consider

The initial resistance for the pair aligns at 0.9850 (100-DMA) ahead of 0.9900 (psychological level) and 0.9905 (Aug. 21 high). On the downside, supports are located at 0.9780 (50-DMA), 0.9750 (200-DMA) and 0.9685 (20-DMA).