USD/CHF Struggling Near 0.9900 Ahead of US Economic Data

USD/CHF Struggling Near 0.9900 Ahead of US Economic Data

31 May 2016, 12:55
Roberto Jacobs
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USD/CHF Struggling Near 0.9900 Ahead of US Economic Data

After rising to over 2-1/2 month high of 0.9956 on Monday, the USD/CHF pair has witnessed a steady decline and has now dropped back to 0.9900 handle ahead of some important US economic releases.

In the last two weeks, the pair has repeatedly failed to build on to its momentum gains but has also been resilient in decisively breaking below 0.9900-0.9880 immediate strong support.

Of late, the pair has been gaining traction on rising prospects of an imminent Fed rate-hike in June/July. However, ahead of the scheduled release of US economic data, later during NA session, traders might be willing to wait for fresh trading moves after the releases. 

Technical levels to watch

Weakness below 0.9900 handle and a follow through selling pressure below previous week's low support near 0.9870, is likely to get extended towards retesting an important confluence resistance break-point turned immediate strong support near 0.9835 region.

Meanwhile on the upside, momentum back above 0.9935-40 resistance now seems to set the stage for extension of the pair's near-term upward trajectory towards reclaiming parity mark.


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