“¢ Subdued USD demand fails to assist the pair to build on last week’s recovery move.
“¢ The downside remains limited amid fading safe-haven demand and a bit of risk-on.
The USD/CHF pair failed to capitalize on the early uptick to near one-week tops and now seemed to head back towards the lower end of its daily trading range.
A combination of diverging forces failed to provide any meaningful impetus and assist the pair to build on the last week’s goodish bounce from one-month lows. A subdued US Dollar demand kept a lid on any further up-move, with the pair once again meeting with some fresh supply near the 1.0120 region.
However, a slight improvement in the risk sentiment, as depicted by a mildly positive opening across the European equity markets undermined the Swiss Franc’s relative safe-haven demand and might turn out to be one of the key factors helping limit any meaningful downside, at least for the time being.
Meanwhile, absent relevant market moving economic releases might further collaborate to range-bound price action at the start of a new trading week and ahead of this week’s key event risk – the latest FOMC monetary policy meeting minutes, due for release on Wednesday.
In the meantime, the broader market risk sentiment and the USD price dynamics might continue to play an important role in influencing the pair’s momentum and produce some short-term trading opportunities.
Technical levels to watch
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