USD/CHF extends recovery from 100-DMA ahead of SNB

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 10, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The USD/CHF pair bounced-off two-month low near 100-DMA and now extends higher towards the mid-point of 0.98 handle.

    USD/CHF heading towards daily pivot at 0.9867

    Currently, the USD/CHF pair trades 0.16% higher at fresh session highs of 0.9849, having found renewed bids near 100-DMA placed at 0.9817. The major extends its corrective mode into Europe, supported by a minor rebound seen in the US dollar across board on a short-covering rally after yesterday’s heavy losses. The USD index gains 0.15% to 97.48, recovering from 97.21 monthly lows.

    Further, the CHF bulls failed to benefit from the persisting risk-off sentiment as the Swiss franc remains on the back foot ahead of the SNB Quarterly policy announcement due later today.

    Markets are expecting the Swiss central bank to keep the rates on-hold after the less aggressive and unusually hawkish ECB decision last week.

    Peter Rosenstrich, head of market strategy at Swissquote, noted, "Prior to the ECB, we had anticipated that the SNB would come out with both guns blazing to defend the franc. However, the less dovish {ECB President Mario] Draghi suggests the debasement of the euro is on pause and therefore threat to the franc is limited."

    USD/CHF Technical Levels

    To the upside, the next resistance is located 0.9867 (daily pivot) levels and above which it could extend gains to 0.9900 (round number). To the downside, immediate support might be located at 0.9817/15 (100-DMA/ Dec 9 Low) and below that 0.9831 (Nov lows).
    For more information, read our latest forex news.

Share This Page

free forex signals