USD/CHF deflates to 5-DMA, despite risk-on

The USD/CHF pair extends its corrective slide into the early European trades as the Swiss received fresh impetus from better-than expected Switzerland UBS consumption indicator.

USD/CHF fails once again near 0.9935

Currently, the USD/CHF pair trades -0.15% lower at 0.9919, on its way to attack 0.99 handle. The major reverses a quarter of yesterday’s extensive rally and now tests 5-DMA support located at 0.9912 as the CHF bulls fought back control amid upbeat domestic data. Swiss UBS consumption indicator showed an improvement from 1.40 previous to 1.47 in April.

While a minor retreat in the US dollar against its major peers also dragged USD/CHF lower from fresh weekly tops. Meanwhile, the USD index drops -0.09% to trade around 95.50 levels. Markets now await the European open for fresh impetus on the USD/CHF pair ahead of the Swiss ZEW economic sentiment figures and US macro updates due later today.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9933/38 (Daily & May 24 High) and above which it could extend gains to 0.9950 (round number). To the downside, immediate support might be located at 0.9884 (May 23 Low) and below that 0.9868/45 (10 & 200-DMA).