USDCHF could struggle to break parity
USDCHF consolidates its recent gains to near six-week tops as the pair continues its upside move from the lows around 0.97 registered on January 10. The price is changing hands within striking distance from the 1.00 round figure which is a ‘hit or miss’ moment for the pair.
Despite the investor sentiment remains subdued and risk aversion prevails, CHF fails to attract buying interest as a safe-haven currency as traders prefer the Japanese yen and gold to shield from global risks. As such, the greenback proceeds with its corrective rebound, appreciating for a seventh day in a row on Wednesday and remains in a solid short-term uptrend.
At this point, it is interesting to see if the bulls are able to bring the pair above the parity level. The risk is that traders could shift to some profit-taking around the important psychological level, citing a generally muted dollar demand in the currency markets. The negative consequences from the still ongoing US government shutdown may undermine the USD’s ability to make a major bullish breakthrough. As such, the probability of a corrective retreat from the current levels is rather high.
Despite the investor sentiment remains subdued and risk aversion prevails, CHF fails to attract buying interest as a safe-haven currency as traders prefer the Japanese yen and gold to shield from global risks. As such, the greenback proceeds with its corrective rebound, appreciating for a seventh day in a row on Wednesday and remains in a solid short-term uptrend.
At this point, it is interesting to see if the bulls are able to bring the pair above the parity level. The risk is that traders could shift to some profit-taking around the important psychological level, citing a generally muted dollar demand in the currency markets. The negative consequences from the still ongoing US government shutdown may undermine the USD’s ability to make a major bullish breakthrough. As such, the probability of a corrective retreat from the current levels is rather high.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.