- USD/CHF continued gaining positive traction for the fifth straight session on Friday.
- Sustained USD buying was seen as one of the key factors driving the pair higher.
- Technical buying above 100-DMA further contributed to the ongoing positive move.
The USD/CHF pair spiked to near one-month tops in the last hour, albeit struggled to extend the momentum beyond the 0.9800 mark and quickly retreated few pips thereafter.
The pair prolonged its positive momentum and continued gaining traction for the fifth consecutive session on Friday – also marking its seventh day of a move up in the previous eight – amid resurgent US dollar demand.
Following the previous day’s modest intraday pullback, the greenback caught some fresh bids and continued benefitting from its status as the global reserve currency amid persistent worries about the coronavirus crisis.
The latest optimism over an additional $484 billion US economic package turned out to be short-lived amid indications that Gilead Sciences’ antiviral drug remdesivier failed to help severely ill COVID-19 patients in its first clinical trial.
Given the overnight sustained move above 100-day SMA, Friday’s positive move could further be attributed to some follow-through technical buying. The pair now seemed to have paused near the very important 200-day SMA.
Meanwhile, the prevailing cautions mood around the global equity markets, which tends to underpin demand for the Swiss franc’s safe-haven demand, did little to hinder the pair’s ongoing positive move to the highest level since March 25.
It will now be interesting to see if the pair is able to capitalize on the momentum or bulls opt to take some profits off the table near a technically significant moving average as the focus now shifts to the US macro data.
Friday’s US economic docket highlights the release of Durable Goods Orders data for March, which might influence the USD price dynamics. This along with developments surrounding the coronavirus saga might produce some meaningful trading opportunities.
Technical levels to watch
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