USD/CHF spikes and retreats, back near daily lows around 0.9715-10 region
|- USD/CHF gained some traction in the last hour, albeit lacked any strong follow-through.
- A pickup in the USD demand extended some support; softer risk tone capped the upside.
- A sustained break below the 0.9700 mark needed to confirm a near-term bearish break.
The USD/CHF pair faded an intraday bullish spiked to mid-0.9700s and now seemed headed back towards the lower end of its daily trading range.
The pair continued showing some resilience at lower levels and once again managed to attract some dip-buying near 100-day SMA, or the lower end of over one-week-old trading range support near the 0.9700 round-figure mark.
A sudden pickup in the US dollar demand during the early North-American session was seen as a key factor behind the pair's uptick over the past hour or so, albeit a fresh leg down in the equity markets capped the upside.
After struggling through the major part of Thursday's trading action, the greenback was back in demand and benefitted from its status as the global reserve currency following the release of US Initial Weekly Jobless Claims.
The report showed that the number of Americans seeking unemployment-related benefits rose 3.839 million in the week that ended April 25 and added to the recent concerns over the economic fallout from the coronavirus-induced lockdowns.
The market worries were evident from a turnaround in the global risk sentiment, as depicted by a negative mood around the equity markets. This, in turn, underpinned the Swiss franc's safe-haven demand and kept a lid on any further gains.
The pair was last seen trading around the 0.9710-15 region. Bearish traders are likely to wait for some follow-through selling below the 0.9700 mark (100-DMA) before positioning for any further near-term depreciating move for the swissy.
Technical levels to watch
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.