USD/CHF stuck in range below 0.9700

The US dollar continues to trade around a flat-line versus its Swiss rival for the second straight session this Thursday, keeping USD/CHF in a tight trading range below 0.97 handle.

USD/CHF trades below all major DMAs

Currently, the USD/CHF pair trades -0.16% lower at fresh session lows of 0.9684, breaking lower towards 0.9650 levels. USD/CHF consolidated the downside and now witnessed fresh selling on the back of mixed broader market sentiment, which boost Swiss franc’s safe-haven status. The European markets trade cautiously ahead of the ECB decision, while oil prices jump higher on solid Chinese imports data and stocks drawdown news.

Adding to the bearish pressure on the major, the USD index reversed yesterday’s relief-rally and resumed the downside against its six major peers, as fading Sept Fed rate hike expectations continue to weigh on the greenback.

Focus now remains on the ECB monetary policy decision due later today, which will provide clear direction to most major currency pairs, including USD/CHF.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9716/36 (20 & 5-DMA) and above which it could extend gains to 0.9761/65 (50 & 100-DMA). To the downside, immediate support might be located at 0.9650 (psychological levels) and below that 0.9620 (daily S3).