Search ForexCrunch
  • US Dollar Index stays in red below 97 on Monday.
  • Improved market sentiment doesn’t allow CHF to gather strength.
  • Coming up: Chicago Fed National Activity Index and Dallas Fed Manufacturing Index.

The USD/CHF started the week in a calm manner and struggled to set its next short-term direction while moving up and down in a 30-pip range. As of writing, the pair was trading at 0.9972 and was virtually unchanged on the day.

With the EU27 endorsing the Brexit deal over the weekend, major European equity indexes on Monday gained traction to reflect an improved market sentiment, which makes it difficult for the CHF to find demand amid its safe-haven status. At the moment, Germany’s DAX is adding 1.15% on the day while the UK’s FTSE 100 is up 0.7%. If Wall Street opens on a strong note ahead of the critical G20 summit, we could see the CHF stay weak against its major rivals.

On the other hand, with the euro and the British pound recovering last week’s losses, the US Dollar Index stays in the negative territory below the 97 handle and doesn’t allow the pair to push higher. As of writing, the DXY was losing 0.15% on the day at 96.80.

Later in the day, Chicago Fed National Activity Index and Dallas Fed Manufacturing Index will be looked upon for fresh impetus.

Technical levels to consider

The initial support for the pair aligns at 0.9965 (50-DMA) ahead of 0.9910 (Nov. 20 low) and 0.9875 (100-DMA). On the upside, resistances are located at 1.0000 (psychological level/parity), 1.0085 (Nov. 16 high) and 1.0130 (Nov. 13 high).