USD/CHF stages solid comeback, eyes 0.9600

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 19, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Mumbai) - The USD/CHF pair wiped-out losses and jumped back into the bids, extending its upbeat momentum into a third-day on Monday, as the US dollar found renewed strength on ripening risk-sentiment.

    USD/CHF bounces-off hourly 50-SMA

    Currently, the USD/CHF pair rises 0.36% to fresh three-day highs at 0.9578, heading towards a test of 0.96 barrier. The USD/CHF pair stages a solid comeback in the mid-European session, as the US dollar halted its corrective slide and resumed its last week’s upsurge backed by upbeat US macro news. The USD index reverses and jumps 0.22% to 94.97 levels.

    Moreover, the Swiss franc tracks the fresh EUR sell-off triggered by rallying European stocks and thus pushes the USD/CHF towards 0.96 handle.

    In the day ahead, the sentiment on the US stocks will determine further direction on the pair. While the major may take fresh cues from Fed speaks due later in the NY session.

    USD/CHF Technical Levels

    To the upside, the next resistance is located 0.9590/0.9595 (Oct 14 High & hourly 200-SMA) levels and above which it could extend gains to 0.9629 (100-DMA). To the downside, immediate support might be located at 0.9525/0.9522 (hourly 50-SMA & daily lows) and below that at 0.9506/0.9500 (daily S3 & round number) levels.
    For more information, read our latest forex news.

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