• A modest USD uptick helps build on the recent sharp rebound from over 3-month lows.
• Technical buying above 200-DMA provides an additional boost and remain supportive.
• The up-move seemed rather unaffected by the weaker risk sentiment/US bond yields.
The USD/CHF pair continued gaining positive traction for the third consecutive session and climbed to near three-week tops in the last hour.
The pair built on last week's sharp rebound from over three-month lows, with a modest US Dollar uptick extending some support and assisting bulls to extend the trajectory further beyond the 0.9900 handle.
The up-move seemed rather unaffected by softer risk sentiment, further reinforced by a modest retracement in the US Treasury bond yields and which tends to boost the Swiss Franc's safe-haven demand.
Meanwhile, possibilities of some technical buying/short-covering, especially after the overnight breakthrough the very important 200-day SMA, could also be one of the factors fueling the ongoing positive momentum.
It would now be interesting to see if bulls are able to maintain their dominant position of the up-move is seen as a selling opportunity amid dovish Fed expectations and deteriorating global risk-appetite.
Moving ahead, today's second-tier US economic data - initial weekly jobless claims and Philly Fed manufacturing index, will now be looked upon in order to capture some short-term trading opportunities.
Technical levels to watch
Any subsequent up-move is likely to confront some fresh supply near the 0.9950 region, above which bulls are likely to aim towards reclaiming the parity mark. On the flip side, the 0.9900-0.9890 region (200-DMA) now becomes immediate support to defend, which if broken might accelerate the fall back towards the 0.9845 horizontal zone.
USD/CHF
Overview:
Today Last Price: 0.992
Today Daily change: 15 pips
Today Daily change %: 0.151%
Today Daily Open: 0.9905
Trends:
Previous Daily SMA20: 0.9858
Previous Daily SMA50: 0.9929
Previous Daily SMA100: 0.9883
Previous Daily SMA200: 0.9893
Levels:
Previous Daily High: 0.9911
Previous Daily Low: 0.9872
Previous Weekly High: 0.9876
Previous Weekly Low: 0.9716
Previous Monthly High: 1.0009
Previous Monthly Low: 0.979
Previous Daily Fibonacci 38.2%: 0.9896
Previous Daily Fibonacci 61.8%: 0.9887
Previous Daily Pivot Point S1: 0.9881
Previous Daily Pivot Point S2: 0.9857
Previous Daily Pivot Point S3: 0.9842
Previous Daily Pivot Point R1: 0.992
Previous Daily Pivot Point R2: 0.9935
Previous Daily Pivot Point R3: 0.9959
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