Search ForexCrunch
  • The USD/CHF pair finds support near the 0.99 handle.
  • Wall Street gains traction in the first half of the NA session.
  • US Dollar Index advances above 99.40.

The greenback’s downward correction forced the USD/CHF pair to fall to a 5-day low at 0.9901. However, the combination of an improved market sentiment and a slightly stronger USD in the NA session helped the pair retrace its losses. As of writing, the pair was virtually unchanged on the day at 0.9930.

The TRY finally reversed its course on Tuesday and helped EM currencies and majors start recovering against the USD. The US Dollar Index, which touched its highest level in nearly 14 months at 96.50 yesterday, went into a consolidation phase and eased to 96.15. However, with the T-bond yield gaining traction amid an improved sentiment in the second half of the day, the US Dollar Index turned north and was last seen at 96.47, adding 0.1% on the day.

Meanwhile, the higher risk appetite that weighs on safe havens lift the stocks in the U.S. At the moment, both the Dow Jones Industrial Average and the S&P 500 indexes  are up nearly 0.5% on the day. The data from the U.S., which were largely ignored by the participants, showed that the import price index remained unchanged in July while export prices declined 0.5%.

There are no macroeconomic data releases that could have a significant impact on the pair’s price action until tomorrow’s retail sales and industrial production figures from the United States.  

Technical outlook

On the downside, the pair could encounter the first support at 0.9900 (daily low/psychological level) ahead of 0.9875 (Jul. 30 low) and 0.9825 (Jun. 14 low). Resistances align at 0.9945/55(daily high/Aug. 13 high), 1.0000 (parity level/psychological level) and 1.0065 (Jul. 13 high).