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USD/CHF struggles to find direction, moves sideways near 0.9980

  • USD/CHF fails to hold above parity on Wednesday.
  • US Dollar Index stays in range below the 97 mark.
  • US markets are closed in honor of former President George H.W. Bush.

The USD/CHF pair, which rose above the critical parity mark earlier in the day, failed to make a decisive move on Wednesday as it fluctuates in a tight 30-pip range. In fact, the pair has been moving in a 100-pip consolidation channel since November 20, reflecting the neutral outlook.

After staging a strong rebound in the second half of the day on Tuesday, the US Dollar Index advanced to a daily high near 97.20 but failed to preserve its momentum as the greenback weakened against its European rivals. However, amid a lack of fundamental drivers behind that move, the index didn’t have a hard time finding support near 96.80 and was last seen at 96.95, where it was virtually flat on the day.

With US markets staying closed today in honour of former President George H.W. Bush, who died Nov. 30 at the age of 94, the pair is likely to stay quiet in the NA trading hours. Later in the day, the Federal Reserve is scheduled to publish its Beige Book. Tomorrow’s macroeconomic calendar from the U.S. will feature ADP employment report, trade balance, weekly jobless claims, and nonfarm productivity data.

Technical levels to consider

On the upside 1.0000 (psychological level/parity/daily high) aligns at the first critical resistance for the pair ahead of 1.0065 (Nov. 5 high) and 1.0130 (Nov. 13 high). Supports, on the other hand, are located at 0.9960 (Dec. 3 low), 0.9925 (Nov. 28 low) and 0.9895 (200-DMA).

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