USD/CHF struggles to find dfirection, continues to trade near parity

• US Dollar Index posts gains for the fifth straight day.
• The 10-year US T-bond yield recovers from lows.
• US stocks futures point to a flat opening.

The USD/CHF pair closed the fifth straight in the positive territory on Tuesday but continues to have a difficult time making a decisive move above the critical parity mark. As of writing, the pair was virtually unchanged on the day near 1.0000.

After ending the previous day above 96 for the first time in two weeks, the US Dollar Index pushed higher on Wednesday to help the pair preserve its recent gains. At the moment, the DXY is up 0.08% on the day at 96.15. With investors staying away from major European currencies amid disappointing data from the euro area and the uncertainty surrounding Brexit, the USD could continue to find demand in the near term.

Meanwhile, major equity indexes in the U.S. point to a flat start as futures are moving sideways in the session. However, the latest remarks from the U.S. Treasury Secretary Mnuchin, who announced that he will be travelling to China with other U.S. officials next week, could help risk-sensitive stocks to gain traction and make it difficult for safe-havens such as the CHF to stay resilient against the buck. Additionally, a modest rebound witnessed in the 10-year T-bond yields could also be taken as a sign of improved market sentiment. 

Technical levels to consider