USD/CHF gains further traction, eyeing to reclaim 1.0100 handle

The USD/CHF pair maintained its bid tone for the fifth consecutive session and has now risen to fresh four week tops.

Currently trading around 1.0090 area, the pair has now moved within striking distance of reclaiming 1.0100 psychological mark, level not seen since Jan. 19, amid growing expectations for faster Fed rate-hike actions in 2017. 

Tuesday's hawkish comments from the Fed Chair Janet Yellen signaled a possible rate-hike action in March and added fuel to Trump-inspired US Dollar rally. Rising US Treasury bond yields have been supportive of the expectations and underpinning the US Dollar demand, eventually assisting the pair to build on to its rebound from the very important 200-day SMA touched at the beginning of this month.

Meanwhile, the prevalent risk-on mood in equity markets is also driving flows away from the Swiss Franc's safe-haven appeal and collaborating to the pair's up-move to the highest level since Jan. 20.

Next in focus would the US economic docket featuring the release of CPI print and monthly retail sales data from the US, which might reinforce hawkish economic outlook and trigger a fresh leg of up-move for the pair. 

Technical levels to watch

Momentum above 1.0100 handle is likely to face some resistance near 1.0120 level (Jan. 19 high) above which the pair seems all set to clear an intermediate resistance near 1.0140-45 region and head towards its next resistance near 1.0175-80 horizontal area. 

On the flip side, weakness below 1.0065 level could get extended towards 1.0025 support, which if broken is likely to drag the pair back towards 100-day SMA, resistance break point turned support, near parity mark.

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