USD/CHF holds steady around 200-DMA, just above mid-0.9900s


  • Conflicting trade-related headlines kept a lid on the overnight positive move.
  • A modest pickup in the USD demand helped regain some traction on Friday.
  • Sliding US bond yields might cap any strong gains for the USD and the major.

The USD/CHF pair edged higher during the early European session on Friday and remained well within the striking distance of over three-week tops set in the previous session.
 
The pair added to this week's goodish recovery move from mid-0.9800s and gained some follow-through traction for the fifth consecutive session on Friday amid signs of progress in resolving the prolonged trade war between the world's two largest economies.

Focus remains on trade developments

In the latest development, officials on Thursday said that both China and the United States have agreed to roll back tariffs in a "phase one" trade deal if it is completed and weighed heavily on perceived safe-haven currencies – including the Swiss Franc.
 
The pair surged past the very important 200-day SMA but struggled to find acceptance at higher levels, rather witnessed a modest pullback in reaction to conflicting reports that the subject of rolling back tariffs faced fierce internal opposition in the White House.
 
Meanwhile, the market reaction, so far, has been muted, with a modest US Dollar uptick helping the pair to attract some fresh buying on Friday. However, a pullback in the US Treasury bond yields might turn out to be the only factor capping any gains for the US and the major.
 
Hence, it will be prudent to wait for some strong follow-through buying before traders start positioning for any further near-term appreciating move back towards reclaiming the parity mark en-route early-October swing highs resistance near the 1.0025-30 region.

Technical levels to watch

USD/CHF

Overview
Today last price 0.9956
Today Daily Change 0.0007
Today Daily Change % 0.07
Today daily open 0.9949
 
Trends
Daily SMA20 0.9915
Daily SMA50 0.9918
Daily SMA100 0.9872
Daily SMA200 0.9955
 
Levels
Previous Daily High 0.9976
Previous Daily Low 0.9909
Previous Weekly High 0.997
Previous Weekly Low 0.985
Previous Monthly High 1.0028
Previous Monthly Low 0.9837
Daily Fibonacci 38.2% 0.995
Daily Fibonacci 61.8% 0.9935
Daily Pivot Point S1 0.9913
Daily Pivot Point S2 0.9878
Daily Pivot Point S3 0.9847
Daily Pivot Point R1 0.998
Daily Pivot Point R2 1.0012
Daily Pivot Point R3 1.0047

 

 

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