Sharp Recovery Lifts USD/CHF Back Close to 0.9900 Level

Sharp Recovery Lifts USD/CHF Back Close to 0.9900 Level

19 May 2016, 13:26
Roberto Jacobs
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Sharp Recovery Lifts USD/CHF Back Close to 0.9900 Level

In the last one hour, the USD/CHF pair witnessed a sharp recovery from session's low and has now moved within striking distance of 0.9900 level.

Wednesday's sharp up-move, led by hawkish Fed minutes that kept June rate-hike prospect alive, assisted the pair to conquer an important confluence resistance near 0.9840-35 zone, comprising of 100 & 200-day SMAs.

Moreover, the pair's sharp recovery from day's through level suggests that the break-out momentum is likely to continue in the near-term and bulls are likely to look for buying opportunities on every dip.

From technical perspective, a follow through strength above 0.9900 seems to add to the break-out momentum, thus paving way for further appreciating move for the pair in the near-term.

Technical levels to watch

On a sustained trade above 0.9900 level, the pair seems to immediately rise to test 0.9945-50 resistance before making an attempt towards reclaiming the parity mark in the near-term.

On the downside, dip below day's through level near 0.9860 seems to find immediate support at the strong confluence resistance break-point near 0.9840-35 region. Fall below 0.9840-35 resistance turned support area is likely to be short-lived and should get bought into near 0.9800 round figure mark.


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