USD/CHF clings to modest recovery gains, around 0.9560-65 region
- USD/CHF once again managed to find some support near the 0.9500 mark.
- A goodish pickup in the USD demand helped regain some positive traction.
- Fading safe-haven demand weighed on the CHF and remained supportive.
The USD/CHF pair rallied around 60-65 pips from the Asian session lows and is currently placed near the top end of its daily trading range, around the 0.9565-70 region.
The pair once again managed to find some support near the key 0.9500 psychological mark and turned higher for the day, snapping four consecutive days of losing streak amid a goodish pickup in the US dollar demand.
The greenback stalled its week-long downward trajectory, triggered by the Fed's unlimited QE, and was being supported by the latest optimism over the passage of a massive $2.2 trillion US economic stimulus package.
This coupled with a mildly positive tone around the US equity futures undermined demand for traditional safe-haven currencies, including the Swiss franc, and remained supportive of the pair's positive move on the first day of the week.
It, however, remains to be seen if the pair is able to capitalize on the move or runs into some fresh supply at higher levels amid mounting fears over the economic fallout from the coronavirus pandemic and lockdowns across the world.
Technical levels to watch
Author
Haresh Menghani
FXStreet
Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.
