USD/CHF Bounces Off 0.9860 Post-ISM
The greenback found some respite after the auspicious ISM manufacturing, with USD/CHF now managing to bounce off 2-week lows in the 0.9860 area and test the 0.9900 handle.
USD/CHF weaker ahead of ISM
The prevailing environment keeps favouring the risk aversion, prompting investors to rush into the safe haven CHF and exacerbate the already bearish note of the pair. The generalized selling interest in the dollar has been also collaborating with the pullback to the 0.9860 area, down from earlier tops in the 0.9950 region, although better-than-expected ISM Manufacturing during May has triggered the current correction.
USD will remain in centre stage later in the NA session, as the Fed’s Beige Book is also due for release. In Switzerland, GDP figures for the first quarter and April’s retail sales have come in on the soft side, while SVME PMI has surprised to the upside.
USD/CHF key levels
The pair is now retreating 0.52% at 0.9889 facing the next support at 0.9849 (200-day sma) ahead of 0.9832 (20-day sma) and then 0.9648 (low May 6). On the other hand, a breakout of 0.9960 (high May 30) would aim for 1.0098 (high Mar.10) and finally 1.0262 (high Jan.29).