USD/CHF extends slow recovery for second straight session
|The USD/CHF pair prolonged its tepid but steady recovery move from multi-month lows and traded with a mild positive bias for the second consecutive session.
Currently placed at two-day peaks, around 0.9475-80 region, the pair was seen benefitting from improving risk appetite. The prevalent positive trading sentiment around European equity markets was seen weighing on the Swiss Franc's safe-haven appeal and driving the pair higher.
Adding to this, a modest pickup in the US Treasury bond yields, which helped the key US Dollar Index to bounce off 13-month lows, further collaborated to the pair's recovery move for the second consecutive session.
It, however, remains to be seen if the pair is able to build on the up-move or runs through some fresh offers at higher levels amid repositioning trade ahead of the FOMC meeting and near-term oversold conditions.
Meanwhile, today's release of CB's Consumer Confidence Index would be looked upon for some short-term trading impetus during early NA session.
• US: Conference Board consumer confidence expected to decline – Danske Bank
Technical levels to watch
On a sustained recovery beyond the key 0.95 psychological mark, the pair is likely to head towards testing its next hurdle near 0.9535-40 horizontal level ahead of 0.9555-60 hurdle. On the downside, 0.9450 level now seems to act as immediate support, which if broken would turn the pair vulnerable to head towards the 0.9400 handle.
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