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  • US Dollar Index struggles to find direction near mid-94s.
  • Trading action is likely to remain subdued amid a lack of significant data releases.

In the absence of market-moving macroeconomic data releases, the USD/CHF pair is trading in a 30-pip range on Tuesday and is having a difficult time setting its next near-term direction. As of writing, the pair was trading at 0.9613, losing 0.15% on the day.

Although concerns over a long-lasting trade between the United States and China escalated following the White House’s announcement of 10% import tariffs on $200 billion worth of Chinese goods, markets didn’t show a sharp reaction as they have been pricing that possibility for a few weeks. Major equity indexes in Europe are trading mixed to reflect a neutral sentiment with German DAX adding 0.18% and the UK’s FTSE staying virtually unchanged on the day.

The only data feature in the economic calendar in the second half of the day will be the NAHB Housing Market Index from the United States, which is likely to be ignored by the participants. Ahead of the data, the US Dollar Index is flat on the day at 94.50.

Later this week on Thursday, the SNB is going to announce its interest rate decision and publish the monetary policy statement.

Technical levels to consider

The initial support for the pair could be seen at 0.9600 (daily low/psychological level) ahead of 0.8535 (Apr. 10 low) and 0.9500 (psychological level). On the upside, resistances are located at 0.9630 (daily high), 0.9690 (20-DMA) and 0.9740 (200-DMA).

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