USD/CHF catches fresh bid, tests 5-DMA

The USD/CHF pair broke the Asian consolidation box to the upside and edge sharply higher, with the bulls making a comeback on 1.02 handle. The Swiss Franc remains solid-off into renewed buying interest seen around the greenback, as the USD bulls extend the recovery from a dip seen on the release of worse-than expected Chicago PMI report.

While a dramatic turnaround in the risk sentiment, after the European stocks erased losses and swung higher in positive territory, also diminished the safe-haven bids for the Swiss currency and therefore, boosted USD/CHF.

Later today, the major will continue to get influenced by the broader markets sentiment in absence of any fundamental news and in wake of holiday-thinned markets.

USD/CHF Technical Levels

To the upside, the next resistance is located at 1.0245 (10-DMA) and above which it could extend gains to 1.0301 (Dec 21 high) and 1.0331 (Nov 2015 high) next. To the downside, immediate support might be located at 1.0150 (psychological levels) and below that 1.0120 (50-DMA) and from there to 1.0100 (round figure).