USD/CHF approaching 200-DMA amid broad-based USD strength
|After an initial drop to 0.9830 at the opening of the NA session, the USD/CHF leaped above 0.99 amid broad based buying interest surrounding the greenback, finally filling the bearish weekly opening gap. As of writing, the pair was trading at 0.9930, recording a 0.75% advance on the day.
Risk-on
Wall Street seems to have shaken off the healthcare voting outcome as major US stock indexes are moving to levels seen before that event took place. Both the Dow Jones Industrial Average and S&P 500 are gaining more than 0.8% on Tuesday, allowing risk appetite to re-emerge and the investors to move away from the safe-haven CHF. Furthermore, the U.S.10-Year bond yield is up 1.8% at 2.42%, giving the greenback an additional boost. At the moment the US Dollar Index is up 0.55% at 99.60.
SNB Governing Board member Andrea Maechler's comments were largely ignored as she once again reiterated that the CHF was overvalued and the SNB would continue to intervene on a need-be basis. On the other hand, Dallas Fed's President Robert Kaplan didn't offer anything surprising as he argued that raising rates aggressively would bump the economy into a slowdown.
Technical outlook
With a break above 0.9945 (200-DMA), the pair could aim for 1.0000 (psychological level) and 1.0075 (100-DMA). On the downside, the first support might be seen at 0.99 (psychological level) followed by 0.9830 (daily low) and 0.9810 (Mar. 27 low).
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