USD/CHF range bound around parity martk

The USD/CHF pair is moving sideways in a 20 pip range on the last day of the week and the month. After dropping to 0.9994 at the end of the Asian session, the pair once again moved above the critical parity level but it's staying in a 20 pip range.

Following three days of steady gains, the USD/CHF yesterday leaped to a new two-week high at 1.0015 fueled by the upsurge witnessed in the US Dollar Index in the closing hour of the NA session. As of writing, the pair is down 0.04% at 1.0007.

Neither the macro data nor the Fed's Dudley's comments received a market reaction. Consumer Spending in the U.S. increased 0.1% in February while the Personal Spending rose 0.4%, matching the expectations for the same period. Furthermore, US inflation figures tracked by the PCE price index increased 1.8% on a yearly basis.

New York Fed President William Dudley, giving an interview on Bloomberg TV, said that there was no rush to act as the economy was not overheating and added that 'couple more' rate hikes would be reasonable in 2017. Participants will look for catalysts at Minneapolis Fed N.Kashkari's (voter, dovish) and St. Louis Fed J.Bullard's speeches before we wrap up the week.

Technical outlook

The first hurdle for the pair is aligned at 1.0015 (Mar 30/daily high) followed by 1.0070 (100-DMA) and 1.0140 (horizontal level). On the other side, with a break below the significant 1.0000 (psychological level), the pair could extend the drop towards 0.9950 (200-DMA) and 0.99 (psychological level).

USD/CHF stays upside corrective near-term – Commerzbank