- USD/CHF fails to capitalize on the early uptick to near two-month tops.
- A mildly softer tone surrounding the USD seemed to exert some pressure.
- The downside remains cushioned amid improving global risk sentiment.
The USD/CHF pair failed to capitalize on the early uptick and has now retreated to the lower end of its daily trading range, around the 0.9815 region.
The pair witnessed a modest intraday pullback from near two-month tops and for now, seems to have stalled its recent bullish trajectory witnessed over the past two weeks amid a mildly softer tone surrounding the US dollar.
The downside is likely to remain limited
The greenback remained on the defensive at the start of a new trading week and eased further from 4-1/2 month tops touched ahead of Friday’s slight disappointment from the US core retail sales and Retail Sales Control Group figures.
However, a slight improvement in the global risk sentiment – amid easing concerns over the outbreak of the deadly coronavirus – undermined the Swiss franc’s perceived safe-haven demand and might help limit any deeper losses.
Given that the US bank will remain closed on Monday in observance of Presidents’ Day, investors might refrain from placing any aggressive bets, which might eventually lead to a subdued/range-bound price action on Monday.
Technical levels to watch
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