“¢ A modest USD uptick helps regain some positive traction on Monday.
“¢ Bulls seemed unaffected by US-China trade news-led risk-off mood.
“¢ Traders now eye speeches by Fed officials for some fresh impetus.
The USD/CHF pair built on its steady intraday climb and is currently placed at the top end of its daily trading range, around the 1.0180-90 region.
The pair stalled its post-NFP pullback from levels beyond the 1.0200 mark and managed to regain some positive traction at the start of a new trading week amid a modest US Dollar uptick.
The up-move seemed rather unaffected by the prevalent risk-off mood, triggered by renewed US-China trade tensions and which tends to underpin the Swiss Franc’s relative safe-haven status.
Market concerns over a full-blown US-China trade war resurfaced after the US President Donald Trump threatened to impose tariffs on Chinese goods, which eventually dampened the global risk sentiment.
It would now be interesting to see if the pair is able to capitalize on the positive momentum or once again meets with some fresh supply at higher levels amid absent relevant market-moving economic data.
Meanwhile, scheduled speeches by three senior Fed officials might influence market expectations over the possibility of any near-term interest rate cut and provide some meaningful trading opportunities.
Technical levels to watch
On a sustained move beyond the 1.0200 handle, the pair is likely to aim towards retesting multi-year tops, around the 1.0235 region, before extending its recent bullish momentum towards reclaiming the 1.0300 round figure mark. On the flip side, the 1.0150 region now seems to have emerged as an immediate support and is followed by last week’s swing low, around the 1.0125 area, below which the corrective slide could further get extended towards challenging the 1.0100 round figure mark.
Share
