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USD/CHF: Recovery stalls near hourly 50-SMA

FXStreet (Mumbai) - The USD/CHF pair tested the hourly 50-SMA near 0.9860 in early Asia, before trimming gains to now trade around 5-DMA.

USD/CHF trades firmer above 100-DMA at 0.9821

Currently, the USD/CHF pair trades 0.23% higher at 0.9850, retreating from session highs posted at 0.9858 earlier this session. The major halted its corrective slide and swung back higher into the positive territory, taking on the recovery from just below 0.98 handle, on the back of reversal seen in the greenback against its major competitors after Friday’s drop. The US dollar gains 0.23% and now trades around 97.80 levels.

Moreover, the Swiss franc emerged the weakest safe-haven so far amid widespread risk –aversion witnessed in the Asian equities, with the markets unnerved ahead of the Fed decision due out on Wednesday.

Looking ahead, broad based US dollar strength is expected to remain the main theme this week as the Fed prepares to raise rate at its Dec 16 meeting, While the SNB left its monetary policy steady last week.

USD/CHF Technical Levels

To the upside, the next resistance is located 0.9864 (hourly 50-SMA) levels and above which it could extend gains to 0.9891/0.9900 (hourly 100-SMA/ round number). To the downside, immediate support might be located at 0.9821/15 (100-DMA/ Dec 9 Low) and below that 0.9799 (Dec 11 Low).

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