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USD/CHF likely to build onto its moves back above 0.9900 Haresh Menghani

10:46 23 May /2016 Forex

The USD/CHF pair reversed from its early losses to 0.9883 and turned back above 0.9900 handle as the overall USD strength gained traction in last couple of hours.

The pair is currently trading up around 0.1% at 0.9915 level, a whisker away from a 10-week high level of 0.9927 touched on Friday, which might pose immediate barrier for the pair.

With no major economic releases from the US on Monday, market participants will look forward to comments from St. Louis Fed President James Bullard later during NY session, which could provide further boost to USD bulls. Investors will also look forward to Switzerland's trade balance data for April, scheduled for release on Tuesday.

Technical levels to watch

Momentum beyond Friday’s high seems to gain traction, assisting the pair immediately towards 0.9945-50 resistance, beyond which the pair seems all set to reclaim parity.

On the flip side, weakness below day’s through support near 0.9980 level is likely to trigger an immediate slide back towards 100-day and 200-day SMA’s confluence resistance break-point, now turned strong support, near 0.9835-30 region.