USD/CHF remains calm around mid-0.99s as DXY consolidates

The USD/CHF pair fell to its session low at 0.9930 in the European morning but failed to extend this move as the greenback showed resilience against its major rivals. As of writing, the pair was trading at 0.9945, down 0.18% on the day.

Despite that recent fluctuation, the pair has been moving in a nearly 40-pip consolidation channel since the beginning of the week and has struggled to make a decisive move in either direction amid a lack of fundamental catalysts. Furthermore, the US Dollar Index has been wavering in a tight band between 98.80 and 99, suggesting a broad-based indecisiveness in USD-denominated assets. At the moment, the DXY is down 0.04%, at 98.95. 

The economic calendar won't be offering any data that could potentially bring some excitement to the markets, and until the Fed releases its statement following the interest rate decision on Wednesday, technical movements could continue to dominate the markets.

Technical outlook

The first technical resistance for the pair could be seen at 0.9987 (200-DMA) ahead of 1.0000 (psychological level) and 1.0020 (100-DMA). On the downside, with a break below 0.9890 (Apr. 28 low), the pair could aim for 0.9810 (Mar. 27 low) and 0.9735 (Nov. 8 low).

• USD/CHF correction lower finished near 0.9850? – Commerzbank