USD/CHF building on Friday’s recovery move, near 0.9300 handle

Analysis General

Published: 2/19/2018 4:15:00 AM
News


   •  A modest USD uptick helps gain follow-through traction. 

   •  Fading safe-haven demand supportive of the up-move.

The USD/CHF pair was seen building on Friday's recovery move from near 20-month lows, with bulls now eyeing a move beyond the 0.9300 handle. 

General US Dollar demand prevailed through the early European session on Monday and has been one of the key factors behind the pair's modest uptick for the second consecutive session. 

Adding to this, improving investors' appetite for riskier assets, as depicted by a positive opening across European equity bourses, was further seen weighing on the Swiss Franc's safe-haven appeal and remained supportive of the bid one surrounding the major. 

The up-move, however, seemed lacking strong conviction as investors refrained from placing aggressive bets amid holiday-thinned trading conditions and ahead of the upcoming FOMC meeting minutes, which might influence the greenback's near-term trajectory and eventually provide some fresh directional impetus.

Technical levels to watch

Momentum beyond the 0.9300 handle is likely to get extended towards 0.9320-25 horizontal resistance, above which a fresh bout of short-covering could lift the pair towards reclaiming the 0.9400 round figure mark.

On the flip side, 0.9260 level now becomes an immediate support to defend, which if broken is likely to accelerate the fall back towards 0.9220 level en-route multi-month lows support near the 0.9200-0.9190 region.



Tag: General
Source: FXSTREET
Views: 88 times

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