USD/CHF has been quite volatile and indecisive below 0.9980-1.0050 area from where it is expected to push a bit lower before starting to push higher in the coming days. USD has been the dominant currency in the pair but as of the recent Trade War tensions and Political aspects, it is struggling to maintain its momentum in the process.
CHF has been struggling with the recent economic reports which lead the currency to be a bit weak in comparison to USD earlier. Recently CHF Foreign Currency Reserves report was published with an increase to 750B from the previous figure of 748B which did help the currency to gain certain momentum in the process. Ahead of the Unemployment Rate report to be published tomorrow which is expected to be unchanged at 2.6%, CHF is expected to maintain the bearish momentum in the pair for the time being.
On the other hand, Ahead of PPI and CPI report this week, today FOMC Member Barkin is going to speak about interest rate and monetary policy decision which is expected to have a neutral impact on the market and Crude Oil Inventories is expected to decrease to -2.8M from the previous figure of 3.8M.
As of the current scenario, ahead of the high impact economic reports of USD, certain volatility is expected in this pair but having dovish economic forecasts on the USD side, it is expected to struggle a bit further before pushing higher against CHF in the coming days.
Now let us look at the technical view. The price currently quite indecisive after rejecting off the 0.9980 area with a daily close which is expected to push the price a bit lower towards the trend line support at 0.99 before pushing higher with a target towards 1.0050 resistance area in the future. As the price remains above 0.9850 with a daily close, the bullish bias is expected to continue in this pair.
SUPPORT: 0.9850-0.9900
RESISTANCE: 0.9980-1.0050
BIAS: BULLISH
MOMENTUM: VOLATILE
