USD/CHF claiming 0.9700 handle amid USD buying wave

Higher bond yields and upbeat Fed members´ comments trigger renewed interest in the buck.
The US Dollar Index is now targetting the 90.00 handle.
USD/CHF bull trend is intact and the bulls now broke above the 0.9700 psychological level.

Flavio Tosti Independent Analyst

The USD/CHF is trading at around 0.9715 up 0.29% on Thursday as USD bulls hit the bid button across the board.

It was a quiet trading session on Thursday until a second wave of US dollar buying this week hit the market minutes before the European session came to an end. The first wave of buying was in the early European session on Tuesday and the US Dollar Index (DXY) made a sharp reversal from the 89.23 level that day. DXY is now trading close to 89.90 now eyeing the 90.00 mark.

Higher US bond yields and recent upbeat comments from Fed officials, in what was a busy week in terms of Fed speeches, prompted USD bulls to break the 89.50-89.60 range to the upside on the DXY.

While it is a pretty light calendar the next event coming up in the US Session is the speech of Loretta Mester, FOMC member, scheduled at 22:45 GMT.

On the larger scale of things, the Swiss National bank has no intention to raise interest rates any time soon while the market is broadly expecting three to four rate hikes in 2018 from the Federal Reserve, which explains the underlying bull trend in the pair.

USD/CHF 4- hour chart

The trend is bullish. Supports lie at 0.9650 and at 0.9577 swing lows while resistances are priced in at 0.9846 and 0.9977 swing highs.

Author

Flavio Tosti

Independent Analyst

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