USD/CHF surges to 0.9925, now eyeing weekly high

Haresh Menghani FXStreet

The USD/CHF pair's recovery gained further traction above 0.9900 handle, lifting the pair to session high level of 0.9927 after the US Q1 GDP was revised higher.

The greenback turned higher against most major currencies after the first quarter growth was revised higher to show a growth of 0.8% annualized rate as compared to a 0.5% growth estimated in the previous release.

During European session, the major turned higher on broad recovery posted by the greenback. The pair extended its momentum beyond 0.9900 handle and has now moved within striking distance of retesting nearly 3-month high level of 0.9938, earlier touched on Tuesday. A follow through strength above weekly high seems to trigger stop-losses and thus accelerate the up-move.

Technical levels to watch

A clear break through weekly highs resistance near 0.9935-40 region set the stage for extension of the pair's near-term bullish momentum towards reclaiming the very important 1.000 psychological mark.

Meanwhile on the downside, weakness back below 0.9900 handle and a subsequent drop below Thursday's low support near 0.9870, now seems to get extended towards testing an important confluence resistance break-point turned immediate strong support near 0.9835 region.

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

EUR/USD deflates to fresh lows, targets 1.1600

The selling pressure on EUR/USD now gathers extra pace, prompting the pair to hit fresh multi-week lows in the 1.1625-1.1620 band on Friday. The continuation of the downward bias comes in response to further gains in the US Dollar as market participants continue to assess the mixed release of US Nonfarm Payrolls in December.

GBP/USD breaks below 1.3400, challenges the 200-day SMA

GBP/USD remains under heavy fire and retreats for the fourth consecutive day on Friday. Indeed, Cable suffers the strong performance of the Greenback, intensified post-mixed NFP, and trades at shouting distance from its critical 200-day SMA near 1.3380.

Gold flirts with yearly tops around $4,500

Gold keeps its positive bias on Friday, adding to Thursday’s advance and challenging yearly highs in the $4,500 region per troy ounce. The risk-off sentiment favours the yellow metal despite the firmer tone in the Greenback and rising US Treasury yields.