USD/CHF pares early gains, turns flat near 0.9140
- USD/CHF lost its traction after rising above 0.9170.
- US Dollar Index stays below 91.00 ahead of US data.
- Wall Street's main indexes look to open near Monday's closing levels.
The USD/CHF pair failed to make a decisive move in either direction on Monday and closed the day virtually unchanged at 0.9145. On Tuesday, the pair edged higher in the early European session but lost its momentum around 0.9170. As of writing, USD/CHF was flat on the day at 0.9143.
Ahead of this week's key macroeconomic data releases, investors seem to be opting out to remain on the sidelines. On Wednesday, the US Federal Reserve will release the Monetary Policy Statement alongside the Interest Rate Decision. On Thursday, the US Bureau of Economic Analysis' first estimate of the first-quarter Gross Domestic Product growth will be watched closely by market participants.
In the meantime, the S&P 500 Futures are trading little changed, suggesting that US stock markets are likely to remain in the second half of the day. On Wednesday, the ZEW Survey - Expectations from Switzerland will be looked upon for fresh impetus.
The Conference Board's Consumer Consumer Index will be featured in the US economic docket but the market reaction could stay muted.
USD/CHF outlook
"Given that we still view the April move lower as corrective, we are on alert from signs of rejection from the 50% retracement next at 0.9116, then the 200-day average at 0.9100/9087," as,d Credit Suisse analysts. "Whilst we are highly alert to a potential floor at these supports, we note that the next support is seen at the uptrend from the 2021 low at 0.9063, where we would have even more confidence in a floor.”
Additional levels to watch for