USD/CHF hits new session highs amid risk-aversion

The USD/CHF pair found support ahead of Monday’s low and recovered ground somewhat, now heading towards the mid-point of 0.96 handle.

USD/CHF tests 5-DMA at 0.9641

Currently, the USD/CHF pair trades modestly flat at fresh session highs of 0.9642, recovering from session lows of 0.9624 reached in early Asia. The major attempts a tepid-bounce after yesterday’s sell-off, largely tracking the pull back in the greenback against its major peers. The USD index extends recovery from 94.30 levels, and now trades +0.07% higher at 94.48 points.

However, the upside is likely to be limited as Brexit fears-led risk-off moods will continue to fuel demand for the traditional safe-haven CHF in the day ahead. Data-wise, markets now look forward to the Swiss PPI and US retail sales data due on the cards later today.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9697/0.9700 (daily R2/ round number) and above which it could extend gains to 0.9751 (50-DMA). To the downside, immediate support might be located at 0.9608 (daily S2) and below that 0.9560/30 (May lows).