USD/CHF consolidates in a range near 2-week tops, around 1.0050 ahead of ADP

   “¢   The prevalent cautions mood underpins CHF’s safe-haven demand and capped gains.
   “¢   The USD remains supported by the overnight upbeat data and helped limit downside.
   “¢   Traders now eye ADP report for some impetus ahead of Friday’s closely watched NFP.

The USD/CHF pair extended its sideways consolidative price action and remained confined in a narrow trading band, around the 1.0050 region or two-week tops.

A combination of diverging forces failed to provide any meaningful impetus and forced the pair to consolidate the overnight bullish break through the 1.0020 heavy supply zone, which has been acting as a key resistance over the past two weeks or so.

The prevalent cautions mood, as depicted by weaker tone around equity markets and reinforced by a modest pull-back in the US Treasury bond yields, underpinned the Swiss Franc’s safe-haven demand and kept a lid on any subsequent up-move.

The negative factor, to a larger extent, was negated by the prevalent bullish sentiment surrounding the US Dollar, which continues to benefit from Tuesday’s supportive US economic releases – ISM non-manufacturing PMI and new home sales data.

Meanwhile, the recent price action clearly points to the reemergence of buying interest around the major and hence, a follow-through positive momentum, possibly towards conquering the key 1.0100 psychological hurdle, now looks a distinct possibility.

Today’s US economic docket, highlighting the release of ADP report on private sector employment, will now be looked upon for some short-term trading impetus, though the key focus will remain on Friday’s official jobs data, popularly known as NFP.

Technical levels to watch