USD/CHF Regains 0.9900 and Above

USD/CHF Regains 0.9900 and Above

23 May 2016, 16:05
Roberto Jacobs

USD/CHF Regains 0.9900 and Above

The greenback is extending its rally at the beginning of the week, now lifting USD/CHF to levels above the 0.9900 handle.

USD/CHF supported near 0.9880

The pair has managed to recover from overnight lows in the 0.9885/80 band following an initial weaker tone around USD as markets were slightly biased towards the risk aversion.

However, USD regained buying interest into the European session, pushing spot to daily tops near 0.9930, levels last seen in early March. The greenback derived some support from comments by FOMC’s Williams, who considered appropriate 2-3 rate hikes by the Fed during this year.

Data wise in the US, advanced Markit’s Manufacturing PMI has come in on the softer side at 50.5 for the current month, missing estimates at 51.0.

USD/CHF key levels

The pair is now advancing 0.07% at 0.9909 facing the next up barrier at 0.9930 (high May 20) ahead of 1.0098 (high Mar.10) and then 1.0262 (high Jan.29). On the other hand, a breach of 0.9836 (200-day sma) would expose 0.9739 (20-day sma) and then 0.9659 (low May 12).


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