USD / CHF rises above 0.9150 level to new daily highs

Get real time updates directly on you device, subscribe now.

  • USD / CHF draws some buying near the 0.9120-15 support zone on Monday.
  • Risk appetite weighs on safe-haven CHF offering pair support.
  • A nice rally in USD demand supports the pair’s strong upward move.

The pair USD/CHF has built on its good intraday bounce and has risen to new daily highs, around the region of 0.9160 during the first half of the European session on Monday.

A combination of factors has helped the USD / CHF pair to reverse a modest bearish open on the first day of a new trading week and has moved higher around 40-45 pips from the 0.9120-15 support zone. The Underlying bullish sentiment in financial markets has weighed on the safe-haven Swiss franc. This, coupled with a strong rebound in demand for the US dollar, has provided a good boost to the pair.

Despite a weak NFP, additional details kept hopes alive for an imminent announcement of reduction in the purchase of Fed bonds in 2021. Investors are now expecting the US central bank to begin reversing its pandemic-era stimulus in December and likely to end QE in mid-2022. This was evident by a strong rally in US Treasury yields, which they acted as a tailwind for the dollar.

The USD / CHF pair, for now, seems to have broken four days of modest losses, although any significant move to the upside still seems elusive. The recent limited price action within a range in the last three weeks points to indecision about the short-term trajectory of the USD / CHF pair. Additionally, low-volume conditions for a US holiday warrant some caution for aggressive bears.

Therefore, any subsequent positive movement is more likely to meet new resistance near the 0.9175-80 region. This, in turn, should limit any further gains for the USD / CHF pair ahead of the 0.9200 round level, at least for now.

USD / CHF technical levels

.
Source Link

Get real time updates directly on you device, subscribe now.

Leave A Reply

Your email address will not be published.