Absence of follow-up buying fades signs of reversal – Crypto News – Crypto News
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USD/CHF leans bullish above 0.9800 on firmer options market signals, Swiss GDP eyed USD/CHF leans bullish above 0.9800 on firmer options market signals, Swiss GDP eyed

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Absence of follow-up buying fades signs of reversal – Crypto News

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2 years ago

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  • USD/CHF is displaying a sideways auction amid the absence of a potential trigger.
  • The downward-sloping trendline plotted from 0.9137 will act as a major barricade for the US Dollar.
  • The US Treasury yields have rebounded after printing a multi-month low.

The USD/CHF pair is displaying topsy-turvy moves above the immediate support of 0.9150 in the early Tokyo session. The Swiss franc asset oscillated in a mere 40-pips range on Thursday amid an absence of a potential trigger that could trigger a power-packed action. Also, the US Dollar Index (DXY) is showing signs of volatility contraction.

The USD Index has slipped to near 101.60, demonstrating a subdued performance. Meanwhile, the US Treasury yields have rebounded after printing a multi-month low. The 10-year US Treasury Yield has recovered to above 3.39%.

On an hourly scale, USD/CHF is displaying a rangebound structure, which indicates volatility contraction that will explode after a critical trigger. The asset witnessed a responsive buying action after dropping to near 0.9085 on Wednesday. The absence of a follow-up buying is indicating that the recovery move could be fading soon. Apart from that, the downward-sloping trendline from January 13 high at 0.9137 will act as a major barricade for the US Dollar.

The 20-period Exponential Moving Average (EMA) at 0.9162 has overlapped the asset, demonstrating a sideways auction profile.

Also, the Relative Strength Index (RSI) (14) is oscillating in a 40.00-60.00 range, showing a rangebound structure.

For an upside move, USD/CHF needs to break above January 11 low of around 0.9200, which will drive the asset towards January 18 high at 0.9246 followed by January 16 high at 0.9289.

On the contrary, a breakdown of Wednesday’s low at 0.9085 will drag the major towards June 4, 2021 high at 0.9054. A slippage below the latter would drag the asset further towards the 4 August 2021 low at 0.9018.

USD/CHF hourly chart

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