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

13 May 2016, 09:31
Roberto Jacobs
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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.


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