USD/CHF off-weekly highs, near 0.9950

By FXStreet FXStreet (Mumbai) – The USD/CHF pair failed to sustain at higher levels and surrendered a part of the Fed hike-backed gains in last hours, sending the major back towards 0.99 handle.

USD/CHF poses solid recovery from below 1h 200-SMA

Currently, the USD/CHF pair trades 0.45% higher at 0.9844, retreating fresh weekly highs scored at 0.9964 in early Asia. The major took a pause in its 4-day winning streak and consolidates the recent extensive rally witnessed on the back of the Fed’s historic lift-off.

The minor-correction in USD/CHF can be also partly attributed to the renewed demand for the Swiss franc following the release of Swiss economic forecasts, published by the Swiss State Secretariat for Economic Affairs (SECO). The forecasts showed that Switzerland’s GDP is expected to grow 0.8% in 2015 before accelerating to 1.5% in 2016 and 1.9% in 2017.

Meanwhile, the major is likely to closely track the US moves ahead of the release of US dataflow later in the day.

USD/CHF Technical Levels

To the upside, the next resistance is located 0.9964 (daily high) levels and above which it could extend gains to 1.0000/03 (round number/ 50-DMA). To the downside, immediate support might be located at 0.9907 (1h 20-SMA) and below that …read more

Source:: FX Street