USD/CHF has recently breached below the 0.9850 area with a daily close which was not quite sufficient to keep pushing the price down consistently with target towards the 0.97 area. CHF has been dominating in the pair recently despite the recent positive USD economic reports.

Despite having worse economic report results, certain gain on the CHF side is quite surprising, but indicating a shift in the market sentiment in the process. Recently, CHF Trade Balance report has been published with a decrease to 2.26B from the previous figure of 2.56B which was expected to increase to 2.85B. Ahead of the Credit Suisse Economic Expectations report next week, certain volatility may be observed on the gains of CHF in the process.

On the USD side, today, Core Durable Goods Orders report is going to be published which is expected to increase to 0.5% from the previous value of 0.2% and Fed Chair Powell's speech is going to be held which is expected to impact the current momentum of USD in the process. Though USD has been quite weak against CHF, but any positive outcome of the speech is expected to regain the lost momentum for further USD gains.

As of the current scenario, today's high impact USD economic reports and events are expected to provide definite momentum in the market, whereas a positive outcome is expected to inject strength for the USD to regain momentum against CHF in the process or else CHF may lead the way further in the coming days.

Now let us look at the technical view. The price has been quite volatile and corrective at the edge of the 0.9850 area from where the price is expected to retrace higher towards the 0.9950 area before pushing lower towards the 0.9700 area in the coming days. As the price remains below the 0.9980 area, the bearish bias is expected to continue further.

SUPPORT: 0.9700, 0.9850

RESISTANCE: 0.9980

BIAS: BEARISH

MOMENTUM: VOLATILE