USD/CHF again faces rejection near 200-DMA, retreats from 0.9800 mark
- USD/CHF continued with its struggle to make it through 0.9800 round-figure mark.
- A dramatic intraday turnaround in the USD prompted some selling around the pair.
- The set-up still seems tilted in favour of bulls supports prospects for additional gains.
The USD/CHF pair surrendered a major part of its early gains and is currently placed near the lower end of its daily trading range, just above mid-0.9700s.
The pair continued with its struggle to build on its momentum beyond the 0.9800 round-figure mark, or one-month tops, and once again faced rejection near the very important 200-day SMA.
The US dollar failed to capitalize on its intraday positive move, instead witnessed a dramatic turnaround and was seen as the only factor behind the pair's downfall in the last hour or so.
Meanwhile, the latest optimism over the easing of coronavirus-related restrictions and the gradual re-opening of the economies remained supportive of a further improvement in the risk sentiment.
This was evident from a goodish bounce in the global equity markets, which undermined the Swiss franc’s safe-haven demand and might help limit any meaningful downside, at least for now.
Even from a technical perspective, the emergence of some dip-buying near 100-day SMA on Monday reinforced last week’s bullish break through a symmetrical triangle and favours bullish traders.
However, it will be prudent to wait for a sustained move beyond the mentioned barrier before positioning for any further near-term appreciating move, towards the 0.9855-60 supply zone.
Later during the early North American session, the release of the Conference Board’s US Consumer Confidence Index might influence the USD price dynamics and provide some trading impetus.
Technical levels to watch