USD/CHF Attempting a Move Back Above 0.9800 Level

USD/CHF Attempting a Move Back Above 0.9800 Level

6 June 2016, 09:26
Roberto Jacobs

USD/CHF Attempting a Move Back Above 0.9800 Level

After being hammered on Friday, the US Dollar is attempting a broad based recovery on Monday with the USD/CHF pair recording a tepid bounce to 0.9770 level from a near 3-week low level of 0.9753.

After rising to a multi-week high level of 0.9956, the pair reversed sharply and fell to 0.9800 handle minutes after disappointing non-farm payroll numbers were releases. The pair extended the slide further below 0.9800 handle after weaker-than-expected ISM non-manufacturing PMI added to the NFP disappointment and eroded the possibilities of imminent Fed rate-hike decision this summer. The pair finally settled to virtually erase all of its gains registered in the previous to weeks.

A broad US Dollar bounce-back seems to assist the pair on Monday, however, after an awfully weak employment figures, coupled with disappointment from recent economic releases, market participants would keenly scrutinize the Fed Chair Janet Yellen's speech about the economic outlook and monetary policy at the World Affairs Council of Philadelphia's luncheon later during NY session.

Technical levels to watch

From current levels, 0.9800 round figure mark seems to restrict immediate recovery for the pair. Any further up-move beyond 0.9800 mark now seems to be limited and capped at a moving averages confluence region near 0.9835-45 area. 

Conversely, on a sustained weakness below 0.9750 immediate support, the pair seems to slide immediately towards 0.9700 handle before extending its downfall further towards 0.9675-70 horizontal support.


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