USD/CHF refreshes yearly top near 0.9825 amid risk reset
|- USD/CHF rises for the fourth consecutive day.
- Broad US dollar strength joins the market’s risk reset following Chinese efforts to tame coronavirus impacts.
- An absence of the US traders, no data/events will keep headlines from China in the spotlight.
USD/CHF takes the bids to 0.9822, +0.03%, during early Monday. The quote recently flashed the fresh high since December 2019 while marking the intra-day top of 0.9824.
Although broad trade sentiment has been under pressure due to China’s coronavirus, the latest efforts from China as well the US market’s off seem to have contributed to the pair’s recent run-up.
Also favoring the pair bulls are the broad US dollar strength, based on mostly upbeat data as well as comments from Japanese Economy Minister Nishimura signaling further liquidity measures from the Asian nation after disappointing GDP data.
To portray the risk-tone, the S&P 500 Futures mark 0.23% profits to 3,389 whereas stocks in China seem to benefit from the government’s readiness to take further measures to safeguard against the deadly virus.
Looking forward, the US markets are off for the day and there are no major data/events scheduled for publishing from Switzerland. As a result, traders will keep eyes on the coronavirus headlines for fresh impulse.
Technical Analysis
The late-December 2019 tops around 0.9830/35, also including 100-day SMA, could act as an intermediate halt to the pair’s run-up towards 200-day SMA near 0.9865 and October 2019 low near 0.9890. Meanwhile, 50-day SMA near 0.9740 offers short-term strong support.
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