- US dollar's reversal from 0.9365 high accelerates below 0.9300.
- The Swiss franc pares losses amid generalized dollar weakness.
- USD/CHF: Confirmation above 0.9353.69 would support further rally – Credit Suisse.
The US dollar retreating sharply against the Swiss Franc on Monday. The pair has accelerated its reversal from the six-month highs at 0.9365 reached last week, breaking through 0.9300 to approach the bottom of the last two-weeks’ trading range, at 0.9215.
The US dollar loses ground with all eyes on US Payrolls data
The greenback has opened the week on a weak note and keeps retreating from last week's peak, with the investors wary about placing large US dollar bets ahead of Friday’s US Non-Farm Payrolls report, which is expected to clarify Federals Reserve’s next step, regarding the official announcement of their plan to start rolling back its bonds buying program.
The positive macroeconomic data, with US factory orders growing beyond expectations in August, showing a 2.1% increase against the 0.9% market consensus, has failed to cheer the USD. The US Dollar Index has extended its pullback from one-year highs at 94.50, back to levels below 94.00.
USD/CHF: Confirmation above 0.9356/69 would support further appreciation – Credit Suisse
From a broader perspective, the FX Analysis team at Credit Suisse observe further bullish potential on the pair if it manages to break through 0.9356/69: “With weekly MACD now accelerating higher, a break above the 0.9356/69 resistance would suggest a more important trending phase is beginning, with scope for 0.9473/97 next, with 0.9672 ultimately viewed as achievable by the end of the quarter.”
Technical levels to watch
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