USD/CHF spikes to two-week tops, around 0.9035 region amid resurgent USD demand


  • USD/CHF gained strong positive traction on Thursday amid a broad-based USD strength.
  • The Fed taper talks and a pickup in the US bond yields extended some support to the USD.
  • Upbeat US labour market reports provided an additional boost and remained supportive.
  • A fall in the US equity markets failed to benefit the safe-haven CHF or hinder the move up.

The USD buying interest picked up pace during the early North American session and pushed the USD/CHF pair to two-week tops, around the 0.9030 region in the last hour.

The pair regained positive traction on Thursday, with bulls now looking to build on the momentum beyond the 0.9025-30 supply zone amid a goodish pickup in the US dollar demand. Investors have grown nervous about whether a surprisingly stronger US economic data could force the Fed to start tapering its bond-buying program sooner rather than later. The market worries were further fueled by a duo of upbeat US labour market reports.

In fact, Automatic Data Processing (ADP) reported this Thursday that the US private-sector employers added 978K jobs in May. This was much higher than 650K anticipated and to a larger extent, helped offset the downward revision of the previous month's reading to 654K from 742K reported previously. Separately, the US Initial Weekly Jobless Claims fell more than expected to 385K during the week ended May 28 from the 405K previous.

Apart from this, a goodish pickup in the US Treasury bond yields was seen as another factor that underpinned the greenback. Bulls seemed rather unaffected and largely shrugged off a sharp fall in the US equity markets, which tends to benefit traditional safe-haven currencies, like the Swiss franc. Hence, a subsequent move towards testing the very important 200-day SMA, currently around the 0.9075 region, now looks a distinct possibility.

Technical levels to watch

USD/CHF

Overview
Today last price 0.903
Today Daily Change 0.0051
Today Daily Change % 0.57
Today daily open 0.8979
 
Trends
Daily SMA20 0.9006
Daily SMA50 0.9146
Daily SMA100 0.9103
Daily SMA200 0.9074
 
Levels
Previous Daily High 0.9024
Previous Daily Low 0.8967
Previous Weekly High 0.903
Previous Weekly Low 0.893
Previous Monthly High 0.9165
Previous Monthly Low 0.893
Daily Fibonacci 38.2% 0.9003
Daily Fibonacci 61.8% 0.8989
Daily Pivot Point S1 0.8956
Daily Pivot Point S2 0.8933
Daily Pivot Point S3 0.8898
Daily Pivot Point R1 0.9013
Daily Pivot Point R2 0.9048
Daily Pivot Point R3 0.9071

 

 

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