- USD/CHF reversed an early dip and turned positive for the third straight session on Friday.
- A sudden pickup in the USD demand was seen as a key factor behind the intraday move up.
- The risk-on mood undermined the CHF’s safe-haven demand and remained supportive.
The USD/CHF pair managed to recover around 45 pips from daily swing lows and climbed to over one-week tops, around the 0.9720 region in the last hour.
The pair quickly reversed an early dip to the 0.9675 region and turned higher for the third consecutive session amid the emergence of some fresh US dollar buying interest since the early European session.
The early optimism over the treatment for COVID-19 virus turned out to be short-lived after Gilead Sciences following note of caution on their antiviral drug Remdesivir.
This comes on the back of growing concerns over the economic fallout from the coronavirus pandemic, which eventually provided a fresh boost to the US dollar’s status as the global reserve currency.
The intraday uptick to the levels beyond the 0.9700 round-figure mark was further supported by a turnaround in the global risk sentiment, which undermined the Swiss franc’s safe-haven demand.
The pair is currently hovering around 100-day SMA. Some follow-through buying might now be seen as a fresh trigger for bullish traders and set the stage for an extension of the near-term appreciating move.
In the absence of any major market-moving economic releases from the US, the broader market risk sentiment and the USD price dynamics might continue to influence the pair’s momentum on Friday.
Technical levels to watch
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