USD/CHF flirting with 100-DMA support near parity mark

Haresh Menghani FXStreet

The USD/CHF pair remained under some selling pressure on Thursday and extended its reversal move from previous session's 4-week high level beyond 1.0100 mark.

Currently hovering around 100-day SMA support near 1.0010 region, persistent US Dollar weakness has been a key driver of the pair's downslide on Thursday. Despite of Wednesday's upbeat US economic data and growing prospects for an eventual Fed rate-hike action, sooner-rather-than-later, investors seemed reluctant to initiate fresh long position amid prevalent uncertainty over the US President Donald Trump's economic policies.

Moreover, the prevalent cautious sentiment around European equity markets was also seen driving flows towards traditional safe-haven currencies, including the Swiss Franc, and further collaborated to the pair's offered tone on Thursday. With today's downslide, the pair reversed all of its gains recorded Monday & Tuesday, and turned negative for the week.

Moving ahead, traders now look forward to the US economic docket that includes the release of - weekly jobless claims, housing starts, building permits and Philly Fed manufacturing index, for some immediate respite for the greenback.

Technical levels to watch

A follow through selling pressure below parity mark, the pair is likely to drift towards 0.9975 horizontal support before eventually dropping to test 0.9930 support area. On the upside, momentum back above 1.0050 level might now confront resistance near 1.0075-80 region above which the pair is likely to make a fresh attempt towards conquering 1.0100 handle and head towards retesting 1.0115-20 strong resistance.

1 Week
1 Month
1 Quarter

1 Week

Avg Forecast 1.0106

100% Bullish
0% Bearish
0% Sideways

Bias Bullish

1 Month

Avg Forecast 1.0124

50% Bullish
25% Bearish
25% Sideways

Bias Bullish

1 Quarter

Avg Forecast 1.0345

69% Bullish
8% Bearish
23% Sideways

Bias Bullish

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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