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USD/CHF hits fresh session lows, risk-on ignored

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 4, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    The US dollar gave up the bids against its Swiss counterpart in the European session, with USD/CHF unable to resist at higher levels.

    USD/CHF upside capped by daily pivot near 1.0075

    Currently, the USD/CHF pair trades 0.06% lower at fresh session lows of 1.0035, fading the recovery near 1.0070 region. The major erased gains and fell back in the red over the last hours as the greenback failed to benefit from the persisting risk-on trades backed by the rebound in the European stocks, while higher oil prices continue to underpin market sentiment.

    Further, the Swiss currency remains supported from the chatter surrounding the M&A deal. ChemChina is seeking China’s biggest overseas takeover in history by bidding for Swiss agribusiness giant Syngenta.

    Later today, a set of US economic data will provide fresh cues on the US dollar, which will eventually impact USD/CHF.

    USD/CHF Technical Levels


    To the upside, the next resistance is located 1.0074/78 (Daily High/ pivot) and above which it could extend gains to 1.0112 (20-DMA). To the downside, immediate support might be located at 1.0004 (50-DMA/ psychological levels) and below that 0.9988/77 (Feb 3 Low/ 100-DMA).
    For more information, read our latest forex news.
     

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