USD/CHF continues to float above parity as DXY closes in on 97
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USD/CHF continues to float above parity as DXY closes in on 97

  • Broad-based USD strength lifts the pair above parity on Tuesday.
  • KOF leading indicator drops to 100.1 in October in Switzerland.
  • Coming up: S&P/Case-Shiller Home Price Index from the U.S.

On the back of a stronger greenback on Monday, the USD/CHF pair rose above the critical parity mark and preserved its momentum during the first half of the day on Tuesday. After rising to a session high of 1.0035, however, the pair retraced its upside move and was last seen flat on the day at 1.0020.

Earlier today, the data published by the  Swiss Institute for Business Cycle Research showed that the Leading Indicator Index fell to 100.1 in October from 102.3 in September and fell short of the analysts’ expectation  of 100.6.

On the other hand, the unabated selling pressure seen on the shared currency and the British pound continues to push investors toward the greenback. Ahead of the  S&P/Case-Shiller Home Price Index from the United States, the US Dollar Index is hovering near the critical 97 mark, adding 0.25% on a daily basis. Meanwhile, despite the widening Italy – Germany bond yield spread, European equity indices cling to modest gains to suggest a neutral market mood, which doesn’t help the CHF find demand as a safe-haven.

Technical levels to consider

The pair could face the initial resistance at  1.0035 (Oct. 29 high) ahead of 1.0070 (Jul. 13 high) and 1.0100 (psychological level). On the downside, supports align at 1.000 (parity), 0.9940 (20-DMA) and 0.9850 (Oct. 15 low).

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