USD/CHF rebounds from 15-month lows, trades above 0.9700


  • US Dollar Index climbs above 96.70 on Thursday.
  • European stocks register strong gains at the start of 2020.
  • Wall Street's main indexes look to open decisively higher. 

The USD/CHF pair hit its lowest level since September of 2018 at 0.9645 on the last trading day of 2019 and has gone into a recovery phase on Thursday as the risk-on atmosphere made it difficult for CHF to find demand. As of writing, the pair was up 0.3% on the day at 0.9706.

Sentiment turns positive after New Year break

Markets cheered the People's Bank of China's (PBOC) decision to cut the Reserve Requirement Ratio by 50 basis points to inject a $100 billion worth of stimulus into the economy at the start of the new year. Major European equity indexes rose sharply with the Euro Stoxx 50 gaining more than 1% and Germany's DAX adding around 0.7% on Thursday.

Moreover, the S&P 500 futures are up more than 0.5% to suggest that Wall Street's main indexes are likely to flirt with fresh all-time highs after the opening bell.

In the meantime, the selling pressure surrounding the greenback seems to have softened with the US Dollar Index staging a rebound before mid-tier data releases, which will include weekly Jobless Claims and the IHS Manufacturing PMI, from the US. On Friday, the SVME PMI will ve the only data release from Switzerland ahead of the ISM Manufacturing PMI and the FOMC December meeting minutes from the US.

Technical levels to consider

USD/CHF

Overview
Today last price 0.9708
Today Daily Change 0.0026
Today Daily Change % 0.27
Today daily open 0.9682
 
Trends
Daily SMA20 0.9803
Daily SMA50 0.9877
Daily SMA100 0.9885
Daily SMA200 0.9926
 
Levels
Previous Daily High 0.9695
Previous Daily Low 0.9661
Previous Weekly High 0.9832
Previous Weekly Low 0.9729
Previous Monthly High 1.0009
Previous Monthly Low 0.9646
Daily Fibonacci 38.2% 0.9682
Daily Fibonacci 61.8% 0.9674
Daily Pivot Point S1 0.9664
Daily Pivot Point S2 0.9645
Daily Pivot Point S3 0.963
Daily Pivot Point R1 0.9698
Daily Pivot Point R2 0.9713
Daily Pivot Point R3 0.9732

 

 

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