USD/CHF rally halts at 0.9800 resistance level
- USD/CHF ends a four-day rally at 0.9800 resistance area.
- Moderate risk appetite has weighed on the US dollar
- Technical indicators show pair biased higher in short and medium-term charts
The US dollar has been going through a steady upward trend against the Swiss franc this week. The greenback extended its rebound from mid-April lows at 0.9590, to regain all the ground lost over the previous week, although it has been unable to break resistance at 0.9800 area and has retreated to the mid-range of 0.9700.
US dollar loses steam as risk appetite picks up
The dollar has eased across the board on Friday, with the US Dollar Index ending a four-day winning streak. The moderate risk appetite witnessed in the markets has undermined safe-havens like the US dollar, which has not found support on the US macroeconomic data today.
Orders for durable goods produced in the US, a forward-looking indicator for Industrial activity plummeted 14.4% in March, the deepest decline over the last six years.
Technical indicators: USD/CHF remains bullish in the short-term
Despite the recent pullback from 0.9800, the pair remains trading within a clear upward trending channel, above the main SMAs on the 4-hour chart. If the pair manages to confirm above the mentioned 0.9800 (Apr 3,6,7 highs), it might aim for 0.9900 (Mar 22, 23 highs) before late 2019 highs at 1.0025 area. On the downside, immediate support lies now at 0.9735 (20 EMA in 4-hour chart) and below there, 0.9590 (Apr 14,15 lows) and 0.9505 (Mar 27, 30 lows).
USD/CHF key levels to watch