USD/CHF struggles to decisively break through 0.96 handle

13 Sep 2017

The USD/CHF pair continued with its struggle to sustain strength above the 0.9600 handle and has now retreated to the lower end of daily trading range, around 0.9590 level. 

Improving global risk sentiment, amid easing geopolitical tensions over the Korean Peninsula, had been one of the key factors behind the pair's strong recovery of nearly 200-pips from 2-year lows touched on Friday.

The US Dollar, however, seemed lacking any strong follow through traction and has failed to provide any fresh bullish impetus to the major. 

This coupled with a new provocation from North Korea, threatening to accelerate its plans to acquire a nuclear weapon, extended some support to the Swiss Franc's safe-haven appeal and further contribute towards keeping a lid on the pair's up-move. 

On the economic data front, the Swiss PPI came-in to show a monthly rise of 0.30% in August, lifting the yearly rate to 0.60% but did little to provide any meaningful impetus. 

Later during the day, the US PPI print would also be looked upon for some short-term trading opportunities ahead of SNB's quarterly monetary policy assessment on Thursday. 

   •  Reuters poll - SNB to keep LIBOR target range unchanged until at least Q1 2019

Technical levels to watch

A strong follow through buying interest beyond 0.9615 level is likely to accelerate the up-move towards mid-0.9600s before the pair aims towards testing 100-day SMA hurdle near the 0.9700 handle.

On the flip side, sustained weakness below 0.9585 level could drag the pair towards mid-0.9500s ahead of its next support near 0.9525 area.

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