USD/CHF Moves to 0.9830-35 Important Juncture

USD/CHF Moves to 0.9830-35 Important Juncture

18 May 2016, 09:15
Roberto Jacobs

USD/CHF Moves to 0.9830-35 Important Juncture

Extending its bid tone for fourth straight trading session, the USD/CHF pair has now risen beyond 0.9800 handle to 0.9830, its highest level since mid-March.

The pair extended its near-term recovery trend from a multi-month low level of 0.9444 touched earlier during the month and is now hovering around an important moving averages (100 & 200-day SMAs) confluence region near 0.9835-40 zone.

Investors on Wednesday will look forward to the minutes of the Fed's meeting in April in order to determine the timing of next Fed rate-hike move, which would eventually decide the near-term fate for the greenback.

Even from technical perspective, the pair is trading at an important juncture and hence, is either on the verge of a major break-out or is about to mark an end to its near-term recovery trend.

Technical levels to watch

On a sustained move above 0.9835-40 confluence resistance, the pair seems to immediately dart towards 0.9890 intermediate resistance and might continue with its upward trajectory towards reclaiming parity mark in the near-term.

Alternatively, reversal from current resistance zone would get confirmed once the pair subsequently drops back below 0.9800-0.9780 immediate support. Below 0.9800 level, the pair could immediately drop below 0.9750 intermediate support before heading towards its next major support near 0.9725-20 area.


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