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USD/CHF remains capped below parity amid risk-aversion

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 29, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    The USD/CHF pair continues to trade in a consolidation phase, with every attempt to the upside sold-off just below parity on the back of increased fight to safety.

    USD/CHF eyes parity

    Currently, the USD/CHF pair trades 0.19% higher at 0.9986, hovering close to fresh session highs of 0.9991 reached last hours. The major remains strongly bid, despite intensifying risk-off as European equities join the global sell-off, while the oil prices return to the red once again. The major European indices are down -1% to -1.50%.

    Moreover, the Swiss franc was little affected by the upbeat Swiss data and continued to edge lower against its US counterpart. The latest Swiss KOF leading indicator for Feb came in at 102.4 versus 99.5 expected. While the subdued sentiment around the US dollar against a basket of major currencies, also fails to keep the bulls at bay.

    Looking ahead, the major continues to track the broader market sentiment ahead of the US datasets due later today.

    USD/CHF Technical Levels

    To the upside, the next resistance is located at 1.0000/08 (parity/ key psychological levels + 100-DMA) and above which it could extend gains to 1.0083 (Feb 4 High). To the downside, immediate support might be located at 0.9950/43 (daily low/ 5-DMA) and below that 0.9926/21 (1h 200 & 100-SMA).
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