untitled design

USD / CHF rises to week-long highs around 0.9200 level

  • USD / CHF is gaining traction for the second day in a row, moving further away from a month-long lows.
  • Signs of stability in the stock markets weigh on the safe-haven CHF and support the pair’s upward move.
  • A subdued USD price action could limit any further gains ahead of the US retail sales data.

The pair USD / CHF has risen to new one-week highs during the first half of the European session, with the bulls now looking to take advantage of the momentum above the 0.9200 level.

The pair has built on the good bounce the day before, from the 0.9120-15 region near month-long lows, and gained traction for the second day in a row on Friday. The rally could be attributed to some continuation shorts hedging amid signs of stability in stock markets, which tends to weigh on the demand for the safe haven Swiss franc.

On the other hand, the US dollar has been seen hovering within a tight trading range and has not provided additional boost to the USD / CHF pair. Having said that, a strong rebound in US Treasury yields United, along with expectations that the Fed will tighten its monetary policy earlier than expected, has continued to act as a tailwind for the USD.

Market participants are now awaiting the US economic calendar, which highlights the publication of monthly retail sales figures. This, coupled with US bond yields, could influence USD price dynamics and provide some boost to the USD / CHF pair. Investors will take more cues from the broader market risk sentiment to seize some short-term opportunities.

From a technical perspective, a sustained force above the 0.9200 level could be seen as a new trigger for the bulls and set the stage for additional earnings. The USD / CHF pair could then again aspire to retest the monthly highs, around the 0.9275 region, with some intermediate resistance near the 0.9230-35 area.

Technical levels to observe

.
Source Link

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular