USD/CHF rebounds to test 5-DMA as USD picks-up pace

The USD/CHF pair stalled its gradual descent and rebounded sharply to hit fresh daily tops near 5-DMA of 1.02771, in response to broad based US dollar recovery.

USD/CHF: Bulls back in command

The USD/CHF pair extends the renewed upside and flirts with daily tops of 1.0269 levels, as the greenback stalled its corrective slide and staged a solid comeback against a basket of major currencies in the European session.

Moreover, downbeat Swiss KOF Economic Barometer numbers weighed down on the sentiment around the Swiss franc, and provided extra legs to the recovery in USD/CHF. The barometer stood flat at 102.0 versus 103.1 expectations.

Attention now turns towards the US new home sales and revised consumer sentiment data, which will provide fresh impetus to the USD bulls and wrap up pre-Christmas week.

USD/CHF Technical Levels

To the upside, the next resistance is located at 1.0301 (Dec 21 high) and above which it could extend gains to 1.0331 (Nov 2015 high) and 1.0346 (multi-year high) next. To the downside, immediate support might be located at 1.0251 (10-DMA) and below that 1.0200 (round figure) and from there to 1.0189 (20-DMA).