USD/CHF trading close to 1.0010 ahead of Trump’s speech on Iran

• Trump will announce its final decision on the Iran nuclear deal at 18:00 GMY this Tuesday.
• The USD/CHF is failing to break the 1.0050 level to the upside. 

The USD/CHF is trading at around 1.0010 down 0.15% on Tuesday ahead of Trump’s speech. The US President will announce his decision on the Iran nuclear deal.

The USD/CHF is trading in a tight range between 1.0010 and 1.0040 level currently finding some intraday support at the 50-period simple moving average on the 1-hour chart.

Although the US dollar was seen higher across the board versus the major currencies, the USD/CHF saw a limited response to the new US dollar buy wave triggered by Jerome Powell. Earlier in the European session, the Federal Reserve’s chairman said: “some investors and institutions may not be well positioned for anticipated US interest rate hikes”.

In recent weeks the USD/CHF has already seen a greater appreciation versus the major currency pairs and the European equity market saw a modest downtick helping the CHF safe-haven demand. However, the USD/CHF uptrend remains for the time being intact.

USD/CHF 4-hour chart

“A convincing move back above 1.0050 area should continue boosting the pair further towards reclaiming the 1.0100 handle. On the flip side, any meaningful retracement now seems to find immediate support near the parity mark, which if broken might prompt some long-unwinding trade and drag the pair further towards 0.9965-60 support area”, wrote FXStreet’s own Haresh Menghani