USD/CHF fades a spike to 100-DMA amid risk-aversion

The US dollar extends its recovery versus its Swiss counterpart in the early European trading, sending USD/CHF higher to test 100-DMA located at 0.9764.

USD/CHF eyes 0.9700?

Currently, the USD/CHF pair trades modestly higher at 0.9756, hovering within a close range to session tops printed at 0.9764 some minutes ago.  USD/CHF found fresh bids near 20-DMA and now heads higher in a bid to retest 0.98 handle, as the bulls ignore broad based US dollar correction. The USD index edges -0.07% lower at 95.26, correcting further from three-days high posted on Friday at 95.58.

While persistent risk-off sentiment failed to prop up the demand for the traditional safe-haven CHF, now pushing the USD/CHF pair further into the positive territory. Looking ahead, markets eagerly await some clarity on the Fed’s rate hike outlook after a series of mixed Fed speaks delivered last week. While the US retail sales data and SNB quarterly policy assessment will remain in focus this week.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9764 (daily top/ 100-DMA) and above which it could extend gains to 0.9795/0.9800 (200-DMA/ round figure). To the downside, immediate support might be located at 0.9706 (Sept 9 low) and below that 0.9650 (psychological levels).