- USD/CHF caught some fresh bids on Friday and move back to the 0.9100 mark.
- The uptick seemed unaffected weaker USD, deteriorating global risk sentiment.
- Sustained move beyond the 0.9140 area needed to confirm any further move up.
The USD/CHF pair maintained its bid tone through the early North American session, with bulls making a fresh attempt to build on the momentum further beyond the 0.9100 mark.
Following the previous day’s sharp pullback of around 60 pips from over one-week tops, the pair managed to regain some positive traction on the last trading day of the week. The uptick lacked any obvious fundamental catalyst and hence, remained capped on the back of softer tone surrounding the US dollar.
The greenback struggled to capitalize on the post-FOMC short-covering move and came under some fresh selling following Thursday’s weaker US economic data. This comes on the back of worries about the second wave of the coronavirus infections and raised doubts over the sustainability of the US economic recovery.
Bullish traders also seemed rather unaffected by deteriorating risk sentiment, which was evident from a fresh leg down in the US equity markets. The risk-off mood might undermine the Swiss franc’s safe-haven demand and keep a lid on any strong gains for the USD/CHF pair, warranting some caution for bullish traders.
Hence, it will be prudent to wait for some strong follow-through buying, possibly beyond the overnight swing high, around the 0.9140 region, before positioning for any further appreciating move. The USD/CHF pair might then surpass the 50-day SMA, around the 0.9160 region, and aim to reclaim the 0.9200 round-figure mark.
Technical levels to watchc
Share
