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.
