USD/CHF eases from 1-1/2-week tops, back around 0.9100 mark

USD/CHF recovers further from multi-year lows amid some follow-through USD buying.
Tuesday’s upbeat US data, a goodish pickup in the US bond yields underpinned the USD.
The risk-on mood weighed on the safe-haven CHF and remained supportive of the uptick.

Haresh Menghani FXStreet

The USD/CHF pair shot to 1-1/2-week tops, around the 0.9135 region during the early European session, albeit lacked any strong follow-through and quickly retreated few pips thereafter.

A combination of factors assisted the pair to gain some follow-through positive traction for the second consecutive session on Wednesday and build on the overnight bounce from sub-0.9000 levels, or multi-year lows. The US dollar remained well supported by Tuesday's release of US data, which showed that the manufacturing sector activity accelerated to a nearly two-year high in August amid a surge in new orders.

The data revived hopes of the US economic recovery, which along with a goodish pick up in the US Treasury bond yields extended some support to the greenback. Apart from this, the prevalent risk-on mood undermined the safe-haven Swiss franc and remained supportive of the bid tone surrounding the USD/CHF pair. However, speculations that the Fed would keep interest rates lower for longer might hold the USD bulls from placing aggressive bets.

This makes it prudent to wait for some strong follow-through buying before confirming that the pair might have bottomed out in the near-term and positioning for any further appreciating move. The pair was last seen trading just above the 0.9100 mark as market participants now look forward to the release of the ADP report on US private-sector employment for some impetus later during the early North American session.

Technical levels to watch

USD/CHF

Overview
Today last price	0.911
Today Daily Change	0.0017
Today Daily Change %	0.19
Today daily open	0.9093

Trends
Daily SMA20	0.9097
Daily SMA50	0.9247
Daily SMA100	0.9444
Daily SMA200	0.9583

Levels
Previous Daily High	0.9101
Previous Daily Low	0.8999
Previous Weekly High	0.9128
Previous Weekly Low	0.9024
Previous Monthly High	0.9242
Previous Monthly Low	0.8999
Daily Fibonacci 38.2%	0.9062
Daily Fibonacci 61.8%	0.9038
Daily Pivot Point S1	0.9028
Daily Pivot Point S2	0.8963
Daily Pivot Point S3	0.8926
Daily Pivot Point R1	0.913
Daily Pivot Point R2	0.9166
Daily Pivot Point R3	0.9232

Author

Haresh Menghani

FXStreet

Haresh Menghani is a detail-oriented professional with 10+ years of extensive experience in analysing the global financial markets.

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