USD/CHF nears 0.9800 as USD buying picks-up pace

A renewed bout of buying interest is seen behind the US dollar in the European session, sending USD/CHF back towards 0.98 handle.

USD/CHF finds bids near 200-DMA at 0.9754

Currently, the USD/CHF pair rallies 1% to 0.9780, flirting with daily highs reached at 0.9782 last minutes. The USD/CHF pair found renewed bids near 200-DMA and from there the bullish run gathered steam once again, in response to aggressive broad USD buying as risk-on persists at full steam in Europe.

The European equities rally 1.30% to +1.90%, with the resource-heavy FTSE rejoicing higher oil and copper prices, while, the USD index rockets +0.83% to fresh 3-day highs of 97.74.

Adding to the weakness in the CHF, the Swiss CPI data fell short of expectations in Oct, showing no growth from +0.1% reading seen in Sept. Later today, markets will find fresh impetus from the US LMCI data ahead of the US elections due tomorrow.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9800/03 (round figure/ 20-DMA) and above which it could extend gains to 0.9850 (psychological levels) and 0.9903 (Nov 1 high) next. To the downside, immediate support might be located at 0.9730 (5-DMA/ daily S1) and below that 0.9691 (daily S3) and from there to 0.9635 (Sept lows).