The USD/CHF pair pulled back from weekly highs as underwhelming US data undermined the greenback in the New York session. The situation preserved the integrity of a key resistance level and sent the pair into negative territory.
The Swiss Franc thus maintains its status as a safe-haven currency, despite commentary from the SNB last weekend on retaining intervention as a means of softening the CHF to make it more competitive. Unimpressive GDP and US Durable Goods Orders data did nothing to aid the greenback. Improvement in the weekly jobless claims data and rising US 10-year bond yields did not help either.
Consequently, the USD/CHF is trading lower, down 0.15% on the day.
The attempt to advance beyond 0.89953 stalled on Thursday, with a mild pullback. This setup makes a retest of the support at 0.89505 likely. A breakdown of this support brings 0.89227 into the picture. A further descent allows bears to tackle the psychological support at 0.8900, with 0.88483 (22 December 2020, 11/25 January lows) coming in closely behind as additional support.
On the flip side, a push by buyers to break the price out of the falling wedge sets up a potential measured move towards 0.90809. However, this move must take out the barriers at 0.89953 and 0.90351. Further advance beyond the projected move brings 0.91361 into the picture, with 0.91464 also lining up as a potential upside target for the future.
