USD/CHF erases Monday's gains, falls below mid-0.99s
- US Dollar Index falls toward the critical 95 handle on Tuesday.
- A light macroeconomic calendar is unlikely to trigger sharp moves in the NA session.
The USD/CHF pair advanced toward the parity mark on Monday but lost its momentum before testing that level and reversed its course on Tuesday. As of writing, the pair was trading at its lowest level of the session at 0.9937, losing 0.35% on the day.
The greenback valuation on Tuesday seems to be the primary driver of the pair's price action. After touching its best level in five weeks at 95.52, the US Dollar Index started the day on a negative note on Tuesday and retreated to 95 mark ahead of macroeconomic data releases from the United States. Nonetheless, the USD weakness today looks like a technical correction of yesterday's upsurge and upbeat data could allow the DXY to gain traction. JOLTS Job Openings and IBT/TIPP Economic Optimism Index will be watched in the NA session.
Meanwhile, National Security Adviser John Bolton crossed the wires in the last hour saying that North Korea had not taken the necessary steps on denuclearization. If these headlines weigh on the market sentiment and force the Wall Street to start the day under pressure, we could see the CHF continue to find demand and stay resilient against the buck.
Technical outlook
The immediate support for the pair aligns ta 0.9930 (50-DMA) ahead of 0.9900 (psychological level/100-DMA) and 0.9865 (Jul. 31 low). On the upside, resistances align at 0.9965 (daily high), 1.0000 (parity level) and 1.0065 (Jul. 13 high).