USD/CHF: Buyers and sellers struggle around 1.0000

• The USD/CHF pair trades near 1.0000 on early Tuesday.
• Positive news for the US-China trade deal continued pleasing the buyers but sellers remain to confront as investors fear ahead of the Trump-Xi meet.
• The pair has 0.9980 as immediate support while 1.0030 can offer nearby resistance.

USD/CHF trades little changed around 1.0000 at the start of Asian trading on Tuesday. The pair remained under pressure at the start of the fresh week before rising on the optimism concerning US-China trade deal. The absence of major events from Switzerland highlights today’s semi-annual testimony by the Fed Chair Jerome Powell from the US as key risk events while trade news likely offering additional clues for near-term direction.

On early Monday, the US President Donald Trump took on his tweeter handle and pleased global trade watchers. Trump lauded trade talks with China and showed readiness to delay increasing tariff hikes on the dragon nation which was supposed to take place on March 01. He then went on to reveal that he’ll have a summit with his Chinese counterpart in Florida to give final accord to the deal.

The news increased global risk appetite and favored the US Dollar as well. Gains were also witnessed by the antipodeans as a trade deal will remove considerable challenges off their largest consumer China.

However, sellers refrained from exiting the markets as the said meeting between the global leaders is still looming and may result in unfavorable outcomes.

Looking forward, the Fed Chair’s semi-annual testimony before the Senate Banking Committee will be closely observed. Global investors will seek clues as to how deeply the Fed is in the mood to support the ‘patience’ calls for the rate-hike which has been apparent in a recent communication from the US central bank.

USD/CHF Technical Analysis

The recent low around 0.9980 can offer immediate support to the pair, a break of which can drag it further down towards 0.9950 and 0.9900 rest-points.

Alternatively, 1.0030 is likely acting as nearby resistance to clear ahead of confronting the 1.0060 and 1.01000 numbers to the north.