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USD/CHF struggling to extend beyond 0.9800

FXStreet (Mumbai) - The bid tone around the USD/CHF pair increased in the European morning, as the major extends its northward trajectory supported by Friday’s US GDP data and Fed Yellen’s comments.

USD/CHF heads towards fresh half-yearly highs

Currently, the USD/CHF pair trades 0.20% higher at 0.9802, easing-off fresh session highs reached at 0.9810 some minutes ago. The major bounced from the key hourly 50-MA support located near 0.9775 and rallied to fresh highs beyond 0.98 handle as the USD bulls regained control and edged higher against is major competitors. The USD index rose to 96.47, recording a 0.12% gain on the day.

The pair remains supported mainly driven by broad based US dollar strength on the back of renewed rate-hike expectations. Yellen’s said last week that rate hike is expected to happen later this year.

While stronger than expected US GDP data released on Friday added to the signs that the US economic outlook is improving and thus triggered fresh USD rally. The economy grew 3.9% y/y in Q2 and outpaced the 3.7% expansion the markets were expecting, to mark the fastest expansion in three quarters.

On the data-space, the European session ahead remains data-empty and hence focus now turns towards the NY session with a slew of US economic data due to be reported.

USD/CHF Technical Levels

To the upside, the next resistance is located 0.9845 (Sept 25 High) levels and above which it could extend gains to 0.9899 (Aug 12 High) levels. To the downside, immediate support might be located at 0.9775 (hourly 50-MA) levels and below that at 0.9731 (Sept 23 Low) levels.

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