USD/CHF Climbs to Session High, Eyeing 0.9750 to Confirm Further Up-Move
USD/CHF Climbs to Session High, Eyeing 0.9750 to Confirm Further Up-Move
The USD/CHF
pair maintained its bid tone through early European session and has
gained traction in last one hour, lifting the pair to session peak level
of 0.9735.
The pair witnessed a sharp reversal from Thursday's swing low on the
back of disappointing weekly jobless claims data after hawkish comments
from few Fed officials. Investors now turn their focus to Friday's
releases of monthly retail sales and consumer confidence data from the
US.
Although, today's data is unlikely to dramatically impact Fed rate-hike
expectations, but could provide some temporary relief for USD bulls. The
pair, after moving above 50-day SMA has now been able to find renewed
buying interest on every dip towards 20-day SMA, suggesting that the
recent bullish momentum could possibly get extended in the near-term.
Technical levels to watch
On the immediate upside, 38.2% Fibonacci retracement level of
1.0249-0.9444 downfall near 0.9755-60 zone, earlier tested during the
current trading week, might continue to act as immediate resistance. On a
clear move above this immediate barrier, the pair could be headed to
test April highs resistance near 0.9795-0.9800 handle.
On the downside, 50-day SMA near 0.9700 round figure mark, closely
followed by 20-day SMA near 0.9680-75 zone, remains key immediate
support levels for the pair. A convincing break below these immediate
support levels might negate the near-term bullish bias, turning the pair
vulnerable to extend its downward trajectory immediately towards 0.9620
horizontal support.
