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  • USD/CHF attracts some dip-buying ahead of 0.9700 mark and turns positive for the day.
  • The prevalent risk-on mood undermined the safe-haven CHF and remained supportive.
  • A subdued USD action failed to impress bulls and kept a lid on any meaningful move up.

The USD/CHF pair edged higher during the early European session and was last seen trading near the top end of its daily trading range, around the 0.9725-30 region.

The pair managed to reverse an early dip to the 0.9700 neighbourhood and turned positive for the day, albeit lacked any strong follow-through. The pair remained well within a broader trading range held over the past two weeks or so, awaiting fresh catalyst before the next leg of a directional move.

The prevalent risk-on mood underpinned demand for the traditional safe-haven Swiss franc and was seen as a key factor that extended some support to the major. The global risk sentiment was being supported by optimism over the easing of lockdown restrictions and the re-opening of economies globally.

The pair bounced around 25 pips from daily lows, albeit a subdued US dollar price action kept a lid on any further gains. The greenback struggled to gain any meaningful traction and largely shrugged off the Fed Chair Jerome Powell’s optimistic comments about the US economy over the weekend.

Hence, it will be prudent to wait for a sustained breakthrough the recent trading range before positioning for any meaningful intraday directional move amid absent relevant market moving economic releases from the US.

Technical levels to watch