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USD/CHF fades a spike to 1.0170

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 20, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - The USD/CHF pair jumped-off the key support near 1.0120 region and rebound higher post-European open, as the Swiss franc tracks the renewed weakness in the euro following ECB Draghi’s ‘ready to do more’ comments delivered last minutes.

    USD/CHF sees a sharp 30-pips rally

    Currently, the USD/CHF pair rises 0.21% to 1.0151, retreating from fresh session highs of 1.0168 levels. The USD bulls jumped back into the bids and drove the pair sharply higher beyond hourly 50-SMA at 1.0161, after Draghi’s dovish remarks smashed the EUR/USD pair and triggered a sharp USD rally across the board. The US dollar index jumps 0.34% to 99.42, retreating from 99.07 daily lows.

    Earlier on the day, the major erased losses and dropped to session lows at 1.0123 levels after the Swiss franc was boosted on SNB’s President Thomas Jordan’s comments. Mr. Jordan reiterated that, “Franc is overvalued and an overvaluation is corrected over time, remains to be seen when.”

    Looking ahead, the major will continue to take cues the sentiment on the European and US stocks. While Fed official Dudley’s speech will be also closely heard.

    USD/CHF Technical Levels

    To the upside, the next resistance is located 1.0200 (round number) levels and above which it could extend gains to 1.0221 (Nov 18 High). To the downside, immediate support might be located at 1.0123 (daily low) and below that at 1.0096 (10-DMA).
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