USD/CHF prints fresh highs above 0.9930 on US data and trade deal optimism
- US Dollar accelerates recovery after US ISM non-manufacturing shows significant recovery.
- USD/CHF up more than fifty pips for the day, the best performance in over a month.
The USD/CHF pair continued to rise after the beginning of the American session and peaked at 0.9933, the highest level since last Wednesday. It is moving with a bullish bias since yesterday.
Trade deal optimism and USD strength
Earlier today, safe-haven currencies including the Swiss Franc weakened amid optimism surrounding US-China trade deal negotiations. More recently US data added more fuel to the rally of the Greenback that was already supported by higher yields.
The US ISM non-manufacturing index came in at 54.7 above the 53.5 expected and on top of the previous reading of 52.5. “The ISM non-manufacturing index rose a little more than predicted in October and fits with the narrative of a Fed pause at the December FOMC meeting,” explained ING analysts.
Levels to watch
The USD/CHF has risen 80 pips since the beginning of the week and is back above the 20-day moving average that stands at 0.9910, now a support area. On the upside, the critical level might be seen at 0.9950: a daily close clearly on top would clear the way to more gains and to a potential test of 0.9990.
On the flip side, as mentioned 0.9910 is a relevant support, below the bullish pressure will ease. The next support levels might be seen at 0.9890 and 0.9865.
Author
Matías Salord
FXStreet
Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.
