USD/CHF steadily climbs to weekly tops, further beyond mid-0.9700s

The USD builds on the overnight bounce and helped gain some follow-through traction.
Improving risk sentiment undermines CHF’s safe-haven demand and remained supportive.
Traders refrain from placing aggressive bets ahead of Trump-Xi meeting later this week.

Haresh Menghani FXStreet

The USD/CHF pair held on to its mildly positive tone through the early North-American session and refreshed weekly tops in the last hour, albeit lacked any strong follow-through.

A combination of supporting factors helped the pair to continue gaining some traction for the second consecutive session on Wednesday and build on the previous session's goodish rebound from sub-0.9700 level, or yearly lows.

The US Dollar remained supported by the overnight not so dovish comments by influential FOMC member and seemed largely unaffected by Wednesday's disappointing release of US durable goods orders data for May.

On the other hand, improving global risk sentiment - as depicted by bullish trading sentiment around equity markets undermined the Swiss Franc's relative safe-haven demand and remained supportive of the positive momentum.

The US Treasury Secretary Mnuchin's remarks on Wednesday, as quoted by CNBC - though were rectified immediately, provided a strong intraday boost to investors’ appetite for riskier assets and dampened demand for traditional safe-haven assets.

The uptick, however, lacked any strong bullish conviction as investors preferred to remain on the sidelines and wait for fresh trade-related updates from the upcoming Trump-Xi meeting at G20 summit later this week.

Hence, it would be prudent to wait for a strong follow-through buying before confirming that the pair might have actually bottomed out in the near-term and positioning for further appreciating move beyond the 0.9800 handle.

Technical levels to watch

USD/CHF

Overview
Today last price	0.9775
Today Daily Change	0.0020
Today Daily Change %	0.21
Today daily open	0.9755

Trends
Daily SMA20	0.9922
Daily SMA50	1.0049
Daily SMA100	1.0031
Daily SMA200	0.9975

Levels
Previous Daily High	0.9778
Previous Daily Low	0.9693
Previous Weekly High	1.0016
Previous Weekly Low	0.9756
Previous Monthly High	1.0227
Previous Monthly Low	1
Daily Fibonacci 38.2%	0.9745
Daily Fibonacci 61.8%	0.9725
Daily Pivot Point S1	0.9706
Daily Pivot Point S2	0.9657
Daily Pivot Point S3	0.9622
Daily Pivot Point R1	0.9791
Daily Pivot Point R2	0.9826
Daily Pivot Point R3	0.9875

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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