USD/CHF holding on to gains above 200-DMA
|After breaking above the significant 200-DMA resistance, the USD/CHF jumped to its new daily high at 0.9975 during the early trading hours of the NA session. Despite a pullback, the pair is poised to extend its rise as the US Dollar Index continues to preserve its bullish momentum.
As of writing, the USD/CHF was up 0.3% at 0.9955 while the DXY gained 0.35% to 99.90. After yesterday's impressive recovery, major US stock indexes started the day with losses hurting the risk appetite and helping the safe-haven CHF limit its losses for now.
On Wednesday, Chicago Federal Reserve President Charles Evans once again said that he supports one or two more rate hikes this year based on the progression towards Fed's goals. During the remaining of the session, Pending Home Sales are due along with speeches by Boston Fed E.Rosengren (2019 voter, dovish) and San Francisco Fed J.Williams (2018 voter, centrist). However, the general market sentiment and the greenback performance should remain as the primary drivers of the price action.
Technical outlook
The first technical resistance for the pair is aligned at 1.0000 (psychological level) followed by 1.0075 (100-DMA) and 1.0140 (horizontal level). On the downside, with a break below 0.9950 (200-DMA), the pair could target 0.99 (psychological level) followed by 0.9830 (Mar. 28 low).
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