Justifies Monday’s bullish Doji to cross 0.9600 ahead of Swiss GDP

  • USD/CHF takes the bids to refresh intraday high, extends Friday’s rebound from monthly low.
  • 50-DMA, 61.8% Fibonacci retracement level add to the downside filters, 10-DMA guards recovery moves.
  • Swiss GDP, full markets eyed for fresh impulse, recovery remains elusive until staying below 0.9750.

USD/CHF pierces the 0.9600 threshold as it stretches the recovery from a one-month low following a bullish candlestick formation. That said, the Swiss currency (CHF) pair refreshed its intraday high around 0.9610 while posting the biggest daily gains in 13 days by the press time.

Not only Monday’s Doji candlestick but the 50-DMA level surrounding 0.9580 and a rebound in the RSI (14) also underpins the USD/CHF recovery.

However, 50% Fibonacci retracement of the March-May upside and the 10-DMA, respectively near 0.9630 and 0.9660, limit the short-term rebound of the USD/CHF pair.

Also acting as an upside hurdle is the area surrounding 0.9650 comprising the multiple levels marked since early May.

Meanwhile, pullback moves may initially aim for the 50-DMA level near 0.9580 before trying to reject the Doji-impressed bullish bias, by renewing the monthly low under 0.9545.

In doing so, the 61.8% Fibonacci retracement level of 0.9525 and the 0.9500 round figure may gain the market’s attention ahead of the 100-DMA, at 0.9410 by the press time.

Also read: USD/CHF rebounds from 0.9560 ahead of Swiss GDP, US NFP in focus

USD/CHF: Daily chart

Trend: Bullish

.

Leave a Comment