USD/CHF better bid, trades around 5-DMA

FXStreet (Mumbai) – The USD/CHF pair is seen posting mild gains in the early trades and attempts to regain 5-DMA on its way to 0.99 barrier.

USD/CHF trades within Monday’s trading range

Currently, the USD/CHF pair gains 0.07% to trade at 0.9870, attempting another run to break above 0.99 handle. The major clinches yesterday’s gains and now edges higher as the favourable risk sentiment diminishes the demand for safe-havens such as the Swiss franc.

However, the gains in USD/CHF remains in check on the back of broad based US dollar weakness. Markets resorted to profit-taking on their USD longs after the recent US PMI led strength. The USD index trades -0.07% lower at 96.93.

In the day ahead, the major will track the sentiment of the European markets ahead of the US factory orders data due to be published in the New York session.

USD/CHF Technical Levels

To the upside, the next resistance is located 0.9897/0.9900 (daily R1/ round number) levels and above which it could extend gains to 0.9959/60 (Oct 28 & 29 High). To the downside, immediate support might be located at 0.9858 (10-DMA) and below that at 0.9824 (1h 200-SMA).

The USD/CHF pair is seen posting mild gains in the early trades and attempts to regain 5-DMA on its way to 0.99 barrier.

(Market News Provided by FXstreet)