USD/CHF tracks USD higher, ignores risk-off

The USD/CHF pair extends its rebound for the second straight session in the European morning, with the CHF bulls unperturbed by the risk-off market profile.

USD/CHF regains hourly 200-SMA at 0.9761

Currently, the USD/CHF pair trades 0.16% higher at fresh session highs of 0.9786, extending its rebound from 0.9685 region. The major remains well bid as it closely follows the US dollar index higher, despite persistent risk-aversion triggered by Brexit-related concerns.

The US dollar index, which measures the relative strength of the greenback against its six major peers, now climbs +0.12% to 96.40 levels. 

Markets now look forward to ECB Draghi’s speech due later this session for fresh moves in the EUR, which is expected to have some impact on the safe-haven Swiss franc.

USD/CHF Technical Levels

To the upside, the next resistance is located at 0.9800/01 (round number/ daily R1) and above which it could extend gains to 0.9839/52 (multi-week tops/ 200-DMA). To the downside, immediate support might be located at 0.9749/31 (5 & 50-DMA) and below that 0.9694. (20-DMA).