It has been an interesting Monday on Wall Street. Thus far, the lead stories have been sell-offs in the NASDAQ (-0.61%) and GOLD (-1.19%). Safe-havens are struggling across the board, with modest action in the USD/CHF (-0.08%) and USD/JPY (+0.06%). For the time being, it looks like institutional investors are rebalancing the books ahead of Q1 2021 coming to a close.

The past month has been a challenging period for bullion. Values have fallen to the 1700.0 area as risk is on the decline. Wall Street’s “fear gauge,” the CBOE Volatility Index (VIX) is currently reading 20.82, very near yearly lows. For reference, in March 2020, the VIX regularly posted values in the 50-70 range.

All in all, it’s a relatively slow day on the markets. However, things are due to heat up in the coming 48 hours. Remember, Wednesday, 31 March is the official end of Q1 2021. Be on the lookout for a flurry of action as investors direct their strategic intentions toward Q2.

For the USD/CHF, things have been quiet; rates are consolidating near 0.9400 for the second consecutive session.

USD/CHF Tightens Up Near 0.9400

At press time (about 1:15 PM EST), the USD/CHF has a shot of posting a daily Doji formation. This will be the second in a row, which suggests that rates may be gearing up for a directional move. Technically, a bullish bias remains warranted as this market is firmly above downside support.

Here are two levels to watch for the near future:

• Resistance(1): Psyche Level, 0.9500
• Support(1): Daily SMA, 0.9305

Bottom Line: If we see the USD/CHF pullback this week, a buying opportunity may come into play. Until Friday’s closing bell, I’ll have buy orders queued up from 0.9309. With an initial stop loss at 0.9274, this trade produces 25 pips on a slightly sub-1:1 risk vs reward ratio.