“¢ Improving risk-sentiment/dismal domestic data weigh on the Swiss Franc.
“¢ A modest USD uptick provides an additional boost and remains supportive.
“¢ Focus shifts to the upcoming FOMC policy update and US-China trade talks.
The USD/CHF pair reversed an early European session dip to the 0.9900 neighborhood and has now recovered a major part of the previous session’s downtick to over one-week lows.
The pair stalled its recent rejection slide from the parity mark and continued attracting some buying interest near important moving averages – 100 & 200-day SMAs – confluence support. A larger than expected drop in the Swiss trade surplus for Nov. weighed on the domestic currency and triggered the initial leg of the intraday up-move.
The Swiss Franc was further weighed down by fading safe-haven demand amid a slight improvement in risk sentiment, as depicted by a goodish rebound in the European equities. This coupled with a modest US Dollar rebound provided an additional boost and contributed to the pair’s uptick of around 25-pips.
It would now be interesting to see if the pair is able to build on the momentum or bearish traders see the current bounce as an opportunity to sell as focus shifts to this week’s key event risks – the highly anticipated FOMC monetary policy update and the high-level US-China trade talks.
In the meantime, today’s US economic docket, highlighting the only important release of the Conference Board’s consumer confidence index, will be looked upon to grab some short-term trading opportunities.
Technical levels to watch
Overview:
Today Last Price: 0.9932
Today Daily change %: 0.13%
Today Daily Open: 0.9919
Trends:
Daily SMA20: 0.9884
Daily SMA50: 0.9914
Daily SMA100: 0.9903
Daily SMA200: 0.9904
Levels:
Previous Daily High: 0.9935
Previous Daily Low: 0.9905
Previous Weekly High: 0.9991
Previous Weekly Low: 0.9922
Previous Monthly High: 1.0009
Previous Monthly Low: 0.979
Daily Fibonacci 38.2%: 0.9916
Daily Fibonacci 61.8%: 0.9923
Daily Pivot Point S1: 0.9904
Daily Pivot Point S2: 0.989
Daily Pivot Point S3: 0.9874
Daily Pivot Point R1: 0.9934
Daily Pivot Point R2: 0.9949
Daily Pivot Point R3: 0.9964
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