USD/CHF Recedes from Near 2-Tops Amid Light Trading

USD/CHF Recedes from Near 2-Tops Amid Light Trading

16 May 2016, 09:16
Roberto Jacobs

USD/CHF Recedes from Near 2-Tops Amid Light Trading

The USD/CHF pair consolidates two back-to-back sessions of gains witnessed last week, now wavering in a tight range near two-week highs

USD/CHF finds stiff resistance around 0.9770 region

Currently, the USD/CHF pair trades almost unchanged at 0.9755, trying hard to break beyond daily tops reached at 0.9768 in the last hour. The major oscillates back and forth in a 15-pips slim range over the past few hours, having stalled its recovery from 0.9748 lows struck in the opening trades.

The pause in the USD/CHF rally can be attributed to the exhaustion faced by the USD bulls, following an extensive rally seen last week to fresh two-week highs. Meanwhile, the US dollar index trades modestly lower at 94.55 levels, easing-off two-week highs printed at 94.84.

Later today, as the Swiss markets are closed on account of Whit Monday holiday, markets look forward to the American session for a set of second-liner economic data releases in the form of Empire State manufacturing index and NAHB housing market index.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9771 (Daily R3) and above which it could extend gains to 0.9800 (round number). To the downside, immediate support might be located at 0.9689/81 (20 & 50-DMA) and below that 0.9659 (May 12 Low).


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