USD/CHF peaks above 0.96 on greenback's advance

Eren Sengezer FXStreet

The USD/CHF pair reached a fresh session high at 0.9630 in the last hour as the steady advance of the greenback provided an additional lift. At the moment, the pair is trading at 0.9625, up 0.5% on the day.

Ahead of the release of the Markit and ISM manufacturing PMI data for the month of June, the US Dollar Index inched closer to the 96 handle, touching a new session high at 95.90. As of writing, the index is at 95.80, up 0.41% on the day. Although the Markit PMI data is expected to remain unchanged at 52.1, the market consensus for the ISM PMI is to expand to 55.2 from 54.9. If today's data come in better than expectations, the greenback could start riding another buying-wave.

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Despite today's upsurge, the pair is still dangerously close to the ten-month low of 0.9550 that was set on Thursday. However, as the major European indices are recording solid gains, American indices are looking to open the day higher as well, which could keep the risk appetite alive and hurt the overall demand for the safe-haven CHF.

In the meantime, the market volatility is expected to remain low during the second half of the NA session and on Tuesday as traders get ready for tomorrow's Independence Day holiday in the U.S.

Technical outlook

According to the RSI indicator on the daily graph, the pair has still room on the upside before it gets into the neutral territory. 0.9680 (20-DMA) could be seen as the first technical hurdle ahead of 0.9735 (Jun. 26 high) and 0.9800 (psychological level/May 30 high). On the flip side, short-term supports align at 0.9600 (psychological level), 0.9550 (Jun. 29 low) and 0.9500 (psychological level).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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