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USD/CHF nears 1.00 amid risk-on rally in equities

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Dec 7, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Mumbai) - USD/CHF extends its recovery mode from post-ECB slump and now heads higher in a bid to regain 1.00 handle on improved risk-sentiment backed by positive equities.

    USD/CHF hovering around hourly 20-SMA

    Currently, the USD/CHF pair trades 0.18% higher at 0.9986, hovering close to fresh session highs reached at 0.9990 last hours. The major jumped-off strong support near 50-DMA located at 0.9944 and attempts a minor recovery in the mid-Asian trades, as the demand for risk currencies such as the greenback increased after the Asian equities joined the Wall Street rally. The US dollar index rose sharply to 98.49, up 0.20% on the day.

    Moreover, the Swiss franc remains undermined ahead of this week’s SNB decision, with markets uncertain over the central banks’ policy stance especially after the ECB surprised markets last week. While the underlying divergent monetary policy outlooks between the Fed and SNB continue to boost the sentiment around USD/CHF.

    In the day ahead, the major is expected to track the broader market sentiment amid lack of fresh fundamental triggers in today’s trading calendar.

    USD/CHF Technical Levels

    To the upside, the next resistance is located 1.0000 (round number) levels and above which it could extend gains to 1.0025 (1h 50-SMA). To the downside, immediate support might be located at 0.9944 (50-DMA) and below that 0.9909 (Dec 4 low).
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