USD/CHF Building Onto Its Gains Above 0.9900 Handle
The USD/CHF pair maintained its bid tone through early NY trading session and the pair has now climbed to its highest level since March 10.
The pair appreciating move gained further traction after the US monthly
new home sales data surpassed even the most optimistic estimates. April
new home sales expanded 16.6% on a monthly basis to an annualized pace
of 619k units while consensus estimates were forecasting the data to
come-in at 512k.
Surprisingly positive housing data boosted the USD/CHF pair further
beyond 0.9900 handle to day's peak level of 0.9934. In the past two
trading sessions, the pair had repeatedly failed to build on to its
momentum above 0.9900 handle, but now seems all set to extend it
near-term appreciating move.
Technical levels to watch
From current levels, 0.9925-50 area seems to act as immediate
resistance, which if conquered sets the stage towards reclaiming the
parity mark.
On the flip side, another failed attempt to extend its bullish momentum
and a subsequent drop back below 0.9900 handle might now trigger a
near-term corrective move for the pair, immediately towards 0.9870
level, which could further get extended towards 100-day and 200-day SMAs
confluence resistance break-point near 0.9335-30 region.
