USD/CHF bounces-off 1h 100-SMA, rises to 1.0070

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - Fresh bids emerged for the USD/CHF pair near hourly 100-SMA at 1.0042 over the last hours, and the prices rallied to daily highs on the back of risk-on rally in European equities.

    USD/CHF bounces-off 100-SMA on hourly sticks

    Currently, the USD/CHF pair trades 0.53% higher at 1.0063, retreating slightly from fresh session highs posted at 1.0073 some minutes ago. The offered tone on the CHF strengthened after the European stocks rebounded higher and boosted the risk-on trades, thereby weighing on the demand for the safe-haven Swiss franc.

    Moreover, the recovery in oil prices combined with EUR/USD weakness further dampened the sentiment around the Swissie and lifted USD/CHF higher from a brief dip to hourly 100-SMA support. Looking ahead, amid a lack of fundamental triggers the broader market sentiment along with the oil price moves will play a crucial role.

    USD/CHF Technical Levels

    To the upside, the next resistance is located 1.0100 (round number) levels and above which it could extend gains to 1.0124/31 (Jan 5 & 6 High). To the downside, immediate support might be located at 1.0006 (10 & 50-DMA) and below that 0.9963/54 (Jan 12 & 15 Low).
    For more information, read our latest forex news.

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