USD/CHF spikes to fresh 6-week tops, near 200-DMA around mid-0.9900s
- US-China trade optimism continues to weigh on the CHF’s safe-haven status.
- The USD underpinned by rising US bond yields and remained supportive.
The USD buying interest picked up the pace during the early European session on Wednesday and lifted the USD/CHF pair to fresh six-week tops, around the 0.9940 regions in the last hour.
After the previous session’s flat closing, a combination of supporting factors helped the pair to regain positive traction on Wednesday and build on its recent strong recovery move from yearly swing lows touched on August 13.
Risk-on mood inspiring bulls
Growing optimism over the resumption of the US-China trade talks continued boosting the global risk sentiment, which was evident from a bullish mood around equity markets and weighed on the Swiss Franc’s safe-haven status.
The risk-on mood allowed the US Treasury bond yields to continue with their recent up-move, which further extended some support to the US Dollar and collaborated to the pair’s momentum to the highest level since early-August.
The pair have now moved within the striking distance of the very important 200-day SMA, which if cleared decisively will be seen as a key trigger for bullish traders and set the stage for a further near-term appreciating move.
Moving ahead, Wednesday’s US economic docket – highlighting the release of Producer Price Index (PPI) for August – will be looked upon for some short-term trading opportunities later during the early North-American session.
Technical levels to watch
|Today last price||0.9937|
|Today Daily Change||0.0018|
|Today Daily Change %||0.18|
|Today daily open||0.9919|
|Previous Daily High||0.9932|
|Previous Daily Low||0.9889|
|Previous Weekly High||0.993|
|Previous Weekly Low||0.9797|
|Previous Monthly High||0.9976|
|Previous Monthly Low||0.9659|
|Daily Fibonacci 38.2%||0.9905|
|Daily Fibonacci 61.8%||0.9916|
|Daily Pivot Point S1||0.9895|
|Daily Pivot Point S2||0.987|
|Daily Pivot Point S3||0.9852|
|Daily Pivot Point R1||0.9938|
|Daily Pivot Point R2||0.9956|
|Daily Pivot Point R3||0.9981|