“¢ A goodish pickup in the USD demand helps regain positive traction.
“¢ Fading safe-haven demand weighs on CHF and provides an additional boost.
After an initial dip to an intraday low level of 0.9943, the USD/CHF pair regained positive traction and has now recovered Friday’s modest downtick.
A goodish pickup in the US Dollar demand, despite sagging US Treasury bond yields, was seen as one of the key factors behind the pair’s uptick at the start of a new trading week. This coupled with fading safe-haven demand, amid positive trade-related developments weighed on the Swiss Franc’s safe-haven appeal and provided an additional boost to the major.
Against the backdrop of a fresh round of US-China trade talks, trade war fears eased further on reports that the US President Donald Trump and Chinese leader Xi Jinping”¯may”¯meet in November to resolve intensifying trade disputes between the world’s two largest economies and triggered a fresh wave of risk-on trade on Monday.
It would now be interesting to see if the pair is able to build on the positive momentum or continues with its struggle to conquer the parity mark as focus shifts to this week’s important release of the latest FOMC meeting minutes and the Fed Chair Jerome Powell’s speech at the Jackson Hole Symposium.
Technical levels to watch
The 0.9980-85 region remains an immediate strong hurdle and is closely followed by the parity mark, above which the pair seems all set to aim towards challenging the 1.0065-70 supply zone.
On the flip side, the 0.9940-35 region now seems to have emerged as an immediate support, which if broken might turn the pair vulnerable to slide further towards testing the 0.9900 handle.
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