USD/CHF extending recovery towards 0.9900

By FXStreet The recovery in the USD/CHF pair found fresh legs post-European open, as the US dollar bolted higher after risk-on sentiment got further fuelled by the rally in the European stocks.

USD/CHF tracks USD higher

Currently, the USD/CHF pair trades 0.24% higher at 0.9876, hovering within a striking distance of fresh daily highs reached at 0.9882 last minutes. A renewed buying interest witnessed in the major can be attributed to the risk-on rally in the European equities, which offered relief to the bulls after the heavy losses booked in the previous session.

Further, the persisting risk-on sentiment continues to dampen the demand for the safe-haven CHF as markets prefer to take the yield advantage amid rebounding stocks and oil prices.

Looking ahead, all eyes remain on the US retail sales data and the Fed decision due next as the US macro calendar remains fairly light for today.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9946/52 (1h 100 & 200-SMA) and above which it could extend gains to 1.0000 (parity). To the downside, immediate support might be located at 0.9859/52 (5 & 10-DMA) and below that 0.9800 (psychological levels).
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Source:: FX Street