Home USD/CHF fails to stay above parity, turns flat on the day near 0.9980
FXStreet News

USD/CHF fails to stay above parity, turns flat on the day near 0.9980

  • US Dollar Index moves in tight range above 97.
  • Brexit uncertainty weighs on sentiment and puts pressure on European stocks.

Boosted by the broad-based USD strength earlier in the day, the USD/CHF rose above the critical parity mark for the first time since November 19 but failed to extend its rally as the weak risk appetite helped the CHF stay resilient against the buck. As of writing, the pair was virtually unchanged on a daily basis at 0.9980.

The US Dollar Index, which rose above the 97 mark on Monday, pushed higher today as the euro and the British pound met a fresh selling pressure amid the ongoing uncertainties surrounding Italian budget crisis and the Brexit deal. After advancing to a new 12-day high at 97.28, the index pulled back ahead of macroeconomic data releases from the United States and was last seen up 0.04% on the day at 97.10.

On the other hand, the political jitters and didn’t allow European stocks to build on yesterday’s gains and supported safe-havens such as the CHF. At the moment, Germany’s DAX is down 0.5% on the day while the UK’s FTSE is falling 0.42%. Additionally, the lack of encouraging developments that would suggest that the U.S. and China could reach a trade deal at the G20 summit might hurt Wall Street and boost the demand for CHF later in the day.

Technical levels to consider

The pair could face the immediate support at 0.9970 (50-DMA) ahead of 0.9910 (Nov. 20 low) and 0.9875 (100-DMA). On the upside, resistances align at 1.0000 (psychological level/parity), 1.0085 (Nov. 16 high) and 1.0130 (Nov. 13 high).

FX Street

FX Street

FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions.