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USD/CHF reverses an early dip to 1-week lows but lacks follow-through

   “¢   The ongoing USD retracement prompts some additional long-unwinding trade.
   “¢   The prevalent risk-on mood/US-China trade optimism helped limit the downside.

The USD/CHF pair has managed to recover early lost ground to one-week lows and might now be headed towards the top end of its Asian session trading range.  

After last week’s repeated failures near the 1.0100 handle, renewed US Dollar selling, triggered by the US President Donald Trump’s declaration of a national emergency on border security, prompted some aggressive long-unwinding trade on Friday.

The USD held on the defensive at the start of a new trading week and kept exerting some downward pressure around the major, though US-China trade optimism continued weighing on the Swiss Franc’s safe-haven demand and helped limit deeper losses.  

The pair reversed an early dip to an intraday low level of 1.0029 but lacked any strong follow-through as investors seemed to refrain from placing any aggressive bets amid absent relevant market moving economic releases and the President’s Day holiday in the US.

Moving ahead, this week’s important release of the latest FOMC meeting minutes will be looked upon for fresh clues over the central bank’s rate hike path for the rest of 2019, which will eventually influence the near-term USD price dynamics and provide some meaningful impetus.

Technical levels to watch

Any subsequent uptick is likely to confront immediate resistance near the 1.0065 level, above which the pair is likely to make a fresh attempt towards conquering the 1.0100 round figure mark. On the flip side, the 1.0030-25 region now seems to have emerged as immediate support, which if broken might accelerate the fall further towards challenging the parity mark.
 

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