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USD/CHF breaks above 1.00 amid risk-on rally in equities

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 8, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The bid tone around the USD/CHF pair just got bigger, with a renewed bout of buying interest seen around the US dollar as the European stocks extend the rebound.

    USD/CHF eyes key resistance near 1.0020

    Currently, the USD/CHF pair trades 0.66% higher at 1.000, hovering close to fresh session highs reached at 1.0005 last minutes. The upbeat sentiment in the markets on the back of rebounding European equities and stabilizing China, eased global market uncertainty and hence, reduced the demand for the traditional safe-havens such as the yen, gold and the Swiss franc.

    Further, weaker Switzerland’s economic data released today also weighed on the domestic currency and drove USD/CHF higher. The Swiss jobless rate ticked higher last month and even beat estimates. The jobless rate rose to 3.7% m/m, up from 3.4% seen in Nov and against a rise to 3.6% expected. While the consumer prices fell 1.3% y/y in Dec, following the 1.4% downturn seen in November.

    Next on tap remains the US non-farm payrolls data, which may have major impact on the major. While the broader market sentiment will continue to persist.

    USD/CHF Technical Levels

    To the upside, the next resistance is located 1.0028/37 (1h 50 & 100-SMA) levels and above which it could extend gains to 1.0088 (Jan 7 High). To the downside, immediate support might be located at 0.9974/69 (1h 20 & 10-SMA) and below that 0.9924 (daily low).
    For more information, read our latest forex news.
     

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