The USD/CHF pair continues to having a difficult time determining a short-term direction and stays in its recent daily channel. At the moment, the pair was trading at 0.9940, up 0.08% on the day. Since Tuesday, the pair has been stuck between 0.9915 and 0.9970.
The main reason why the pair struggled to find direction during the first half of the week seems to be a combination of a weak greenback and a higher risk appetite. While the risk appetite has been limiting the downside by making the safe haven CHF less desirable, the US Dollar Index’s failed attempts to add to its gains above 99 cap the bullish momentum.
In fact, the US Dollar Index jumped to 99.20 during ECB President Draghi’s press conference in the early NA session but came back under pressure amid falling U.S. Treasury yields. As the session went on, the DXY eased back towards 99 and is now at 99.01, still up 0.16% on the day. The next potential catalyst for the pair could be the GDP data from the United States tomorrow. Until then, the pair is likely to continue to waver in its daily trading channel.
The pair could encounter the first resistance at 0.9980 (200-DMA) ahead of 1.0000 (psychological level) and 1.0030 (100-DMA). To the downside, supports are located at 0.9915 (Tuesday low), 0.9875 (Mar. 26 low) and 0.9810 (Mar. 27 low).