USD/CHF climbs to fresh session tops, above mid-0.9800s

   “¢   A goodish pickup in the USD demand helps regain positive traction.
   “¢   The global flight to safety does little to boost CHF/stall the up-move.

The USD/CHF pair built on its goodish intraday up-move and has now recovered around 70 pips from sub-0.9800 level, or closer to three-month lows.

After an initial downtick, the pair caught some fresh bids and was being supported by a goodish pickup in the /currencies/us-dollar-index demand. Despite a combination of negative forces – expectations of a dovish Fed in 2019 and the partial US government shutdown the greenback managed to regain positive traction and turned out to be one of the key factors driving the pair higher.

Currently placed at session tops, around the 0.9865 region, the recovery move seemed rather unaffected by the prevalent risk-off mood, which tends to underpin the Swiss Franc’s (CHF) perceived safe-haven demand, with resurgent USD demand turning out to be an exclusive driver of the ongoing positive momentum through the mid-European trading session.

The pair might now be headed back towards retesting the very important 200-day SMA support turned resistance, though it remains to be seen if bulls are able to make it through the mentioned barrier amid absent relevant market moving economic releases from the US.  

Technical levels to watch

The 0.9880 region (200-DMA), closely followed by the 0.9900 handle now seems to act as immediate resistance levels, above which a fresh bout of short-covering could lift the pair further towards the 0.9945-50 supply zone. On the flip side, the 0.9840-30 region might now protect the immediate downside, which if broken might drag the pair back towards testing sub-0.9800 level (0.9795-90 support area).