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    USD/CHF surges sharply to 0.9700 neighborhood Haresh Menghani

    After bottoming out at six-week low around 0.9572 the USD/CHF pair witnessed a remarkable recovery, boosting the pair within striking distance of 0.9700 handle to a 7-day high level of 0.9680.The pair's initial rebound was triggered after the SNB held its monetary policy stance and left interest-rates unchanged at its monetary policy assessment this Thursday. Adding to this, fresh bout of US Dollar buying interest provided additional boost to the pair. Positive sentiment surrounding the greenback got an additional support from a surprisingly strong Philly Fed manufacturing index, which negated the adverse impact of slightly weak inflation and higher-than-expected weekly jobless claims data from the US.From technical perspective, rebound from the vicinity of monthly lows support and a follow through strong buying interest should continue boosting the pair further in the near-term.Technical levels to watchOn the immediate upside, 0.9700 round figure mark might provide some intermediate resistance, above which the pair seems to head towards testing 50-day SMA resistance near 0.9725-30 region. A convincing strength above 50-day SMA now seems to pave way for further up-move towards an important moving-averages (20-day & 100-day SMAs) confluence resistance near 0.9780-85 region.Conversely, any profit taking move might now find immediate support around 0.9660-50 resistance break-point turned immediate support and any follow-through selling is likely to be absorbed thus limiting any further downside around 0.9630 area.


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