USD/CHF stuck in range around 0.9750 ahead of US data

The USD/CHF pair paused its three-day bullish momentum, as the bulls face exhaustion heading towards the US macro releases and Fedspeaks.

USD/CHF consolidates near 7-week tops

The spot is seen moving back and forth in a 30-pips tight range over the last hours, after having faced stiff resistances near 0.9755/60 region, as the US dollar stalled its pull back and resumed its corrective slide from five-week highs against its main competitors.

The greenback fails to benefit from rising Treasury yields amid improved risk appetite, fuelled by the return of Trump reflation trades. However, the downside remains cushioned amid expectations of upbeat US final GDP figures and hawkish Fedspeaks, both of which would add further to the Fed rate hike expectations.

USD/CHF Technical Strategy

Jim Langlands at FX Charts lays out the preferred strategy: “US$Chf reached the important 0.9770 resistance today, which capped further gains and saw a quick reversal to 0.9690 before settling at 0.9720. I suspect further choppy trade lies ahead with a mild downside bias although medium term traders should be looking to buy the dips for an eventual run above 0.9770 and on to 0.9800/10 and eventually higher. Buy US$Chf @ 0.9660. SL @ 0.9580, TP @ 0.9800.”