Wednesday, September 9, 2015

USD/CHF: double top amid risk-on rally in equities

FXStreet (Mumbai) - The USD/CHF pair’s recovery from the NY session low of 0.9774 ran into offers once again around the previous day’s high of 0.9821, leading to a double formation amid risk-on rally in the equity markets.

Double top breakout even though equities rally

The safe haven CHF has surprisingly strengthened today, even though equity markets across Asia and Europe extended the risk-on rally witnessed in the previous session. The spot turned lower from the highs around 0.9821 and breached the double top neckline at 0.9774 levels.

The pair now trades around 0.9760; just below its hourly 50-MA located at 0.9766 levels. The strength in the CHF contradicts the weakness seen in other traditional safe haven assets - JPY, Treasuries.

USD/CHF Technical Levels

The immediate resistance is located at 0.9766 (50-DMA), above which the spot could re-test the daily high of 0.9723. On the other side, support is seen at 0.9748 (hourly 100-MA) and 0.9693 (hourly 200-MA).
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