USD/CHF moves back above 0.9900 mark, fresh session tops

USD/CHF regained positive traction on Monday and was supported by a combination of factors.
The risk-on environment undermined the safe-haven CHF and extended some support to the pair.
Surging US bond yields benefitted the USD and remained supportive of the intraday positive move.

Haresh Menghani FXStreet

The USD/CHF pair maintained its bid tone through the first half of the European session and climbed to fresh daily tops, around the 0.9010 region in the last hour.

A combination of factors assisted the pair to regain positive traction on Monday and recover a part of the previous session's retracement slide from the 0.9045 region, or over two-month tops. The prevalent upbeat market mood undermined the safe-haven Swiss franc. This, coupled with some renewed US dollar buying interest, remained supportive of the USD/CHF pair's intraday uptick.

The global risk sentiment remained well supported by hopes for a strong economic recovery amid the progress in coronavirus vaccinations and the likelihood for a massive US fiscal spending. Expectations for a larger government borrowing to fund the stimulus pushed the yield on the benchmark 10-year US bond to the highest level in nearly one-year and benefitted the greenback.

Friday’s unimpressive NFP report, showing that the US economy added 49K jobs in January, strengthened the case for more fiscal measures to support the economy. Bets for a massive US stimulus package increased further after the US Senate passed a budget resolution to fast track the approval of President Joe Biden's proposed $1.9 trillion coronavirus relief plan without Republican support.

From a technical perspective, the recent breakout through the 0.8920-25 supply zone and the emergence of dip-buying supports prospects for additional gains. Bulls might look to build on the momentum further beyond the 100-day SMA and the USD/CHF pair seems all set to retest last week's swing high, around the 0.9045 region amid absent relevant market-moving economic data.

Technical levels to watch

USD/CHF

Overview
Today last price	0.901
Today Daily Change	0.0019
Today Daily Change %	0.21
Today daily open	0.8991

Trends
Daily SMA20	0.8911
Daily SMA50	0.8892
Daily SMA100	0.9014
Daily SMA200	0.9191

Levels
Previous Daily High	0.9046
Previous Daily Low	0.8989
Previous Weekly High	0.9046
Previous Weekly Low	0.8901
Previous Monthly High	0.8926
Previous Monthly Low	0.8758
Daily Fibonacci 38.2%	0.901
Daily Fibonacci 61.8%	0.9024
Daily Pivot Point S1	0.8971
Daily Pivot Point S2	0.8952
Daily Pivot Point S3	0.8915
Daily Pivot Point R1	0.9028
Daily Pivot Point R2	0.9065
Daily Pivot Point R3	0.9085

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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