USD/CHF advances to fresh daily highs near 0.8930
- USD/CHF stages a modest recovery after finding support near 0.8900.
- US Dollar Index climbs above 90.50 on Friday.
- Investors await UoM Consumer Sentiment Index data from US.
After dropping to 0.8900 area on Wednesday, the USD/CHF pair fluctuated in a relatively tight range on Thursday but gained traction on Friday. As of writing, the pair was up 0.3% on a daily basis at 0.8930.
Earlier in the week, the broad-based selling pressure surrounding the greenback caused USD/CHF to fall sharply. The upbeat market mood and FOMC Chairman Jerome Powell's dovish tone made it difficult for the USD to find demand and the US Dollar Index (DXY) touched its lowest level in two weeks at 90.25.
The negative shift witnessed in market sentiment on Friday seems to be helping the DXY stage a rebound. At the moment, the S&P 500 Futures are down 0.27% on the day and the DXY is up 0.22% at 90.61.
Later in the session, New York Federal Reserve President John Williams will be delivering a speech at 1500 GMT. Additionally, the University of Michigan will publish its preliminary Consumer Sentiment Index data for February, which is expected to improve slightly to 80.8 from 79 in January.
USD/CHF technical outlook
Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, thinks that a break below 0.8830/23 support area could open the door for further USD/CHF losses toward 0.8758.
“Below 0.8758 would target 0.8703/.8698, the 2014 lows. Failure here will introduce scope to 0.8317, a long term Fibo," Jones added.
Additional levels to watch for
Author
Eren Sengezer
FXStreet
As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.
