USD/CHF stuck in a range awaiting Fed Speakers

On Monday, the USD/CHF pair is having a tough time determining a short-term direction amid a lack of fresh fundamental drivers. As of writing, the pair is at 1.0020, recording a daily loss of 0.08%.

After dropping to a new four-month low at 0.9812 on Monday last week, the pair was able to make a compelling recovery back above the important parity mark as the Swiss Franc couldn't gain traction amid the positive sentiment surrounding the global equity indices.

On the first trading day of the second quarter, U.S. stocks are set to open flat. However, as the crude oil prices remain bid, the energy stocks could help the major indexes gather some upside momentum, weighing on the CHF. 

On the contrary, the recent dovish tone of the Fed speakers have been limiting the gains of the US Dollar Index. If today's statements from New York Fed President William Dudley, Philadelphia Fed President Patrick Harker, and Richmond Fed President Jeffrey Lacker maintain the same tone, the USD/CHF could find it difficult to extend the recent uptrend.

Technical outlook

The pair could encounter the first technical resistance at 1.0040 (Fib. 38.2% of Jan/Feb fall) followed by 1.0070 (100-DMA) and 1.0170 (Mar. 7 high). On the downside, with a break below 1.0000 (psychological level), the drop could retreat towards 0.9950 (200-DMA) and 0.9880 (Mar. 22 low).

• USD/CHF stays upside corrective near term – Commerzbank