It looks like the USDCHF pair would lack the bullish momentum to overcome the 0.9200 barrier on a daily closing basis
Following a quiet start to the day and the final week of this year, dollar demand has picked up somehow during the European hours as risk sentiment deteriorated amid the resurgent concerns surrounding the Omicron coronavirus variant. Rising cases in many countries make investors worried about the outlook for the global economy as global central banks started to tighten policy.
Against this backdrop, the safe-haven USD index surged to the 96.23 area, up 0.22% on the day. USDJPY rallied to one-month highs around 114.70 and was last seen clinging to the upper end of the extended intraday range. Should this barrier give up anytime soon, the 115.00 figure will come into the market focus. However, the pair could struggle to extend the ascent due to low trading volumes during a pre-holiday week.
Meanwhile, USDCHF bounced from the 200-DMA and climbed back to the 0.9200 level before retreating slightly in recent trading. It looks like the pair would lack the bullish momentum to overcome this barrier on a daily closing basis. Furthermore, there is a strong barrier around 0.9210 where the 20- and 100-DMAs converge. To finish the month in the green, the dollar needs just to settle at 0.9200.
As for EURUSD, the pair keeps facing resistance around 1.1340 to get back to the flat-line just above 1.1300 in recent trading after another failed bullish attempt. On the other hand, the common currency derives support from the 20-DMA, currently at 1.1300. Should the prices fail to hold above this figure in the short term, the pair may challenge the 1.1290 region amid a stronger dollar. However, it looks like EURUSD will continue to tread water in a tight range so far.
