FXStreet (Mumbai) – The USD/CHF pair witnessed fresh buying interest in early Europe, rebounding sharply from 100-DMA located near 0.9860 region.
USD/CHF sees a 30 pips-rally in last hour
Currently, the USD/CHF pair trades 0.18% higher at 0.9886, having tested hourly 50-SMA located at 0.9887. The major finally ended the consolidative mode seen in Asia and spiked to daily highs just shy of 0.99 barrier as the USD bulls fought back lost control and jumped back into the bids against its major competitors.
However, USD/CHF finds it difficult to extend gains as sentiment remains mixed following a negative close on the Chinese indices (Shanghai Comp closes -2.50%) and on minor sell-off seen in commodities prices. Later today, the broader market sentiment will play a crucial role and influence further moves in the major amid a light trading session ahead.
USD/CHF Technical Levels
To the upside, the next resistance is located 0.9900 (round number) levels and above which it could extend gains to 0.9927 (Dec 24 High). To the downside, immediate support might be located at 0.9863 (100-DMA) and below that 0.9839 (Dec 23 Low).
(Market News Provided by FXstreet)