USD/CHF Climbs Further to Test 0.9650 Resistance
Continuing with its upward trajectory, the USD/CHF
pair has now moved back above 0.9600 level and is currently trading
just a tad below 0.9650 level, virtually at the high point of the day.
The
pair has witnessed a sharp recovery of over 200-pips from 0.9444, its
lowest level since August 2015 touched on Tuesday. Broad based US Dollar
recovery, after being butchered in the previous week on the back of BoJ
disappointment, assisted the pair to extend its bounce-back for third
consecutive day as traders now seem to lighten their USD bearish
positions ahead of the closely watched US monthly employment data.
The
pair is currently trading close to an important resistance confluence
near 0.9640-50 area, comprising of 20-day SMA and 23.6% Fibonacci
retracement level of pair's fall from 2016 highs to recent lows. Hence, a
follow through buying interest now seems to open room for further
recovery in the near-term.
Technical levels to watch
Momentum
above 0.9650 strong resistance should assist the pair to extend its
recovery immediately towards another confluence resistance near
0.9740-50 area, comprising of 50-day SMA and 38.2% Fibonacci retracement
level. April high levels near 0.9680-85 might provide some intermediate
minor resistance.
On the flip side, reversal from current
resistance level might now take immediate support at 0.9600 round figure
mark. A convincing weakness below 0.9600 handle might negate prospects
of any further recovery and could possibly drag the pair back towards
its recent daily closing lows support near 0.9550-45 area.
