USD/CHF strongly bid around 200-DMA amid US elections volatility

The US dollar stalled its recent downslide and rebounded sharply against its Swiss counterpart on Monday, sending USD/CHF as high as 0.9774 before receding gains to now trade around the mid-point of 0.97 handle.

USD/CHF supported at 5-DMA

Currently, the USD/CHF pair rises +0.77% to 0.9757, having jumped-off 5-DMA support at 0.9730, daily lows. The USD/CHF pair moved-off lows and now attempts another run towards daily highs amid improved market sentiment spurred by Clinton’s clearances from the emails case by the FBI, which sent treasury yields through the roof and fuelled an extensive rally in the US dollar across the board. Meanwhile, the USD index now jumps +0.54% to trade around 97.50 levels.

Looking ahead, the US presidential elections will remain the focal point this week, with any related news-flow likely to have a significant impact on the risk-flows and USD price-action. In the meantime, markets look forward to the US LMCI data due to be reported later in the NA session.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9781 (100-DMA) and above which it could extend gains to 0.9800 (round figure) and 0.9850 (psychological levels) next. To the downside, immediate support might be located at 0.9730 (5-DMA/ daily S1) and below that 0.9691 (daily S3) and from there to 0.9635 (Sept lows).

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