USD/CHF Pierces Through 50-DMA, Now Eyeing 0.9800 Level
After dipping below 0.9700 handle, the USD/CHF is staging a sharp recovery to currently trade at the high point of the day near 0.9740.
On Monday, the greenback seemed to have lost its recovery momentum against the Swiss franc, reversing from 50-day SMA resistance. On Tuesday, the USD/CHF pair resumed its strong rebound momentum from last week's multi-month low level of 0.9444 and clear past 50-day SMA resistance near 0.9710-15 region.
With a virtually empty economic calendar, the pair seems more likely to extend its near-term established momentum.
Technical levels to watch
From current levels, the pair could immediate aim towards retesting April high resistance near 0.9785-0.9800 area, which if conquered would open up the case of short to medium term bottoming formation. Hence, above 0.9800 handle the pair could easily extend its upward trajectory towards 100-day SMA resistance near 0.9845-50 zone.
Meanwhile on the downside, weakness below 0.9710 minor support would turn bias to the downside for an immediate test of 20-day SMA support near 0.9675-70 area. Additional weakness below 20-day SMA would negate prospects of any further recovery, turning the pair vulnerable to extend its down-slide, initially towards 0.9615 intermediate support and eventually towards its next major support near 0.9575 level.