USDCHF Climbs Above 1.0050 Ahead of US ISM PMI

The USDCHF pair extended its steady intraday climb through the mid-European session and jumped to fresh session tops in the last hour. What is next? The following technical analysis explains.

November 5, GKFX – The pair built on Friday’s post-NFP goodish rebound from near one-week lows, with a combination of supporting factors helping the pair to continue gaining positive traction for the second consecutive session.

Fundamental Highlights

A slight improvement in investors’ appetite for riskier assets, as depicted by a mildly positive mood around European equity markets, was seen denting the Swiss Franc’s safe-haven status and providing a minor lift.

This coupled with a modest pickup in the US Dollar demand, despite a weaker tone surrounding the US Treasury bond yields, provided an additional boost and remained supportive of the positive momentum. 

With today’s up-move, the pair has now climbed around 100-pips from Friday’s swing low level of 0.9968 and has also moved within striking distance of the YTD tops, set last Wednesday.

Traders now look forward to the release of US ISM non-manufacturing PMI, a key highlight from today’s US economic docket, in order to grab some short-term opportunities during the early North-American session.

USDCHF Technical Analysis

Immediate resistance is pegged near the 1.0070 region, above which the pair seems all set to aim towards challenging over 17-month tops resistance near the 1.0095-1.0100 zone.

On the flip side, the 1.0020 level now seems to have emerged as an immediate support, below which the pair is likely to accelerate the slide further below the parity mark towards retesting the 0.9970-65 support area.


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