USD/CHF Reverses from 0.9700 Neighborhood
The USD/CHF pair met with fresh supply near 0.9700 handle and has now turned negative to trade close to session low of 0.9665.
The
risk-off sentiment, ahead of the key event risk (US monthly jobs
report) seems to have raised the safe-haven demand for the Swiss franc,
thus capping any further up-move for the pair. Later during the NY
session, the Labor Department is scheduled to release the monthly job
numbers for the month of April. A positive surprise would turn out to be
the next big trigger for extension of the pair's near-term recovery
trend.
Technical levels to watch
Above
0.9700 handle, the pair is likely to confront immediate resistance near
0.9720-25 area (50-day SMA), which if cleared would mark a fresh leg of
up-move for the pair, immediately towards April month high level
resistance near 0.9795-0.9800 zone.
On the downside, 20-day SMA
region near 0.9655-50 seems to protect immediate down-slide. Failure to
hold this immediate support should expose sub-0.9600 mark support near
0.9580 level.
