USD/CHF off day’s high, dips to 0.9900 handle

The up-move in the USD/CHF pair seems to take a pause near weekly high level of 0.9922, with signs of minor profit taking moved dragging the pair back to 0.9900 handle.

In absence of any major economic trigger, except for the existing home sales data later during NY session, the US Dollar bulls want to take some profit off the table on the last trading day of the week. The pair is on track to record three consecutive weeks of advances, recovering over 450-pips from multi-month low level of 0.9444 touched earlier in May.

Given the pair's break-out through an important resistance near 0.9840-35 and follow through momentum beyond 0.9900 handle, weakness below 0.9900 level is likely to be short-lived and could be bought into.

Technical outlook

Yann Quelenn, Market Analyst Swissquote Bank SA pointing to the bullish technical set-up, notes, "USD/CHF is pushing higher and bullish momentum continues. Hourly resistance at 0.9913 (16/03/2016 high) has been broken while a break of strong support located at 0.9652 (06/05/2016 low) would confirm significant selling pressures. Expected to show continued strengthening."

"In the long-term, the pair is setting highs since mid-2015. Key support can be found 0.8986 (30/01/2015 low). The technical structure favours a long term bullish bias."