USD/CHF Off Day’s High, Dips to 0.9900 Handle
The up-move in the USD/CHF
pair seems to take a pause near weekly high level of 0.9922, with signs
of minor profit taking moved dragging the pair back to 0.9900 handle.
In absence of any major economic trigger, except for the existing home
sales data later during NY session, the US Dollar bulls want to take
some profit off the table on the last trading day of the week. The pair
is on track to record three consecutive weeks of advances, recovering
over 450-pips from multi-month low level of 0.9444 touched earlier in
May.
Given the pair's break-out through an important resistance near
0.9840-35 and follow through momentum beyond 0.9900 handle, weakness
below 0.9900 level is likely to be short-lived and could be bought into.
Technical outlook
Yann Quelenn, Market Analyst Swissquote Bank SA pointing to the bullish
technical set-up, notes, "USD/CHF is pushing higher and bullish momentum
continues. Hourly resistance at 0.9913 (16/03/2016 high) has been
broken while a break of strong support located at 0.9652 (06/05/2016
low) would confirm significant selling pressures. Expected to show
continued strengthening."
"In the long-term, the pair is setting highs since mid-2015. Key support
can be found 0.8986 (30/01/2015 low). The technical structure favours a
long term bullish bias."
