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  • The USD remains well supported by rising US bond yields but did little to provide any impetus.
  • Bulls also seemed rather unaffected by risk-on mood, which dents the CHF’s safe-haven status.

The USD/CHF pair traded with a mild negative bias through the mid-European session and is currently placed at the lower end of its daily trading range, around the 0.9925-20 region.
The pair failed to capitalize on this week’s goodish rebound from three-week lows and once again faced rejection near the very important 200-day SMA. The pair met with some fresh supply on the last trading day of the week and for now, seems to have snapped two consecutive days of winning streak.

Stronger USD /risk-on mood failed to impress bulls

Bulls seemed rather unimpressed by the prevalent stronger sentiment surrounding the US Dollar – further backed by a goodish pickup in the US Treasury bond yields on Friday – and a positive mood around equity markets, which tends to weigh on traditional safe-haven currencies – including the Swiss Franc.
Despite the reports related to an impeachment inquiry against the US President Donald Trump and the subsequent release of the full complaint letter from the ‘whistleblower’, the recent encouraging trade-related developments lifted the key USD Index to fresh two-week tops on Friday and remained supportive of improving risk sentiment.
Hence, the downtick could be solely attributed to some technical selling from a key techncail barrier and warrant caution before placing any aggressive bets for any further downfall ahead of Friday’s US macro releases – durable goods orders data and core PCE price index (the Fed preferred inflation gauge).
Friday’s US economic docket also highlights the release of Personal Income, Personal Spending and the final version of the September UoM Consumer Sentiment Index, which might further contribute towards producing some meaningful trading opportunities on the last day of the week.

Technical levels to watch