USD/CHF corrects daily losses after SNB Bulletin, remains in daily range
Following the release of the SNB's Quarterly Bulletin, the USD/CHF pair staged a moderate recovery and turned flat on the day. As of writing, the pair is trading at 0.9750.
The SNB didn't offer anything surprising in the bulletin as it reiterated that the bank will remain active in the foreign exchange market as necessary while taking the overall currency situation into consideration and the negative interest rate policy is intended to make the CHF investments less attractive.
- SNB Quarterly Bulletin: SNB will remain active in FX market as necessary
However, despite that recent rise, the pair continues to trade in a very tight 20-pip range on Wednesday, struggling to find its next direction amid a lack of catalysts. In fact, the economic calendar won't be featuring any significant data that could impact the pair's price action. The US Dollar Index and the market sentiment could remain as the driving factors. At the moment, the US Dollar Index is flat on the day at 97.40.
Technical outlook
The RSI's on the 4-hour and the daily chart for the pair are moving sideways near the 50 handle, confirming the near-term neutral outlook. 0.9800 (Fib. 38.2% retracement of May 11 - Jun. 6 fall/psychological level) remains as the initial hurdle ahead of 0.9915 (100-DMA) and 0.9985 (200-DMA). On the downside, supports are located at 0.9700 (20-DMA), 0.9610 (Jun. 6 low) and 0.9550 (Nov. 9 low).
- USD/CHF upside corrective near term – Commerzbank