“¢ Persistent USD buying helps build on last week’s goodish rebound from over 3-week lows.
“¢ Cautious mood fails to revive CHF’s safe-haven demand and hinder the positive momentum.
The greenback continued scaling higher across the board, lifting the USD/CHF pair to over two-week tops in the last hour.
After Friday’s good two-way moves, the pair regained positive traction at the start of a new trading week and held in positive territory for the fourth trading session in the previous five. The pair built on last week’s goodish rebound from over three-week lows and was being supported by a strong follow-through US Dollar buying interest.
The latest US monthly jobs report reinforced market expectations that the Fed will stick to a gradual rate hike path and remained supportive of the prevailing strong USD bullish sentiment. This coupled with escalating trade spat between the US and China provided an additional boost to the greenback and helped offset a mildly cautious mood around equity markets, which tend to support the Swiss Franc’s safe-haven demand.
Hence, an extension of the pair’s ongoing positive momentum, even beyond the parity market, amid absent market moving economic releases, now looks a distinct possibility.
Technical levels to watch
Momentum beyond the parity mark is likely to get extended towards 1.0025 supply zone, above which the pair is likely to aim towards challenging 16-month high, around the 1.0065-70 region, set on July 13.
On the flip side, 0.9950 area now seems to protect the immediate downside, which if broken could drag the pair back towards 0.9920 intermediate support en-route the 0.9900 handle.
Share
